Does the 1-800-GOT-JUNK? Franchise Agreement prohibit franchisees from soliciting 'National Account Customers' outside of their territory as described in Section 2.4?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
or the purposes of this Section 2.4 and this Agreement, “National Account Customers” means a customer, a group of customers or an entity acting on behalf of a customer group or customers (under common ownership or control) with offices, franchises or stores or who is otherwise conducting business both inside and outside of the Territory and for which the Franchisor has arranged to provide the Services at multiple locations inside or outside of the Territory. National Account Customers may include, without 4908-1371-6037.2 Franchise Agreement 4/22 limitation, corporations, non-profit organizations, federal, state and local government entities and organizations and any other persons or entities that may have a need for purchasing the Services at multiple locations inside or outside of the Territory. Franchisee acknowledges and agrees that any customer that purchases local commercial services from Franchisee may at any time become or qualify to become a National Account Customer if it has offices, franchises, or stores, or is otherwise conducting business both inside and outside of the Territory, or otherwise meets the definition of a National Account Customer.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document does not explicitly state that 1-800-GOT-JUNK? prohibits franchisees from soliciting National Account Customers outside of their territory. However, the document does define National Account Customers as entities with multiple locations both inside and outside of a franchisee's territory, for which 1-800-GOT-JUNK? has arranged services at multiple locations.
The agreement allows 1-800-GOT-JUNK? to manage National Accounts, potentially acting as an agent or general contractor. As an agent, 1-800-GOT-JUNK? acts on behalf of the franchisee. As a general contractor, 1-800-GOT-JUNK? may subcontract services to the franchisee, provided the franchisee meets the terms of the National Account agreement and client expectations.
A franchisee can decline to provide services to a National Account Customer by notifying 1-800-GOT-JUNK? in writing within one business day of the request. If the franchisee declines or doesn't respond within the specified time, 1-800-GOT-JUNK? can provide the services themselves, through an affiliate, a subcontractor, or another franchisee. Franchisees should be aware that 1-800-GOT-JUNK?'s policies regarding National Account Customers can change, as detailed in the Operations Manual.