Does the 1-800-GOT-JUNK? Franchise Agreement specify any geographic limits related to 'National Account Customers' in Section 2.4?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may require Franchisee to enter into Franchisor’s then current form of National Account Service Agreement in order to provide the Services to National Account Customers with premises located within the Territory.
Franchisee may decline to provide the Services to a National Account Customer by providing a written notice to Franchisor within one (1) Business Day of receipt of a request by Franchisor to provide the Services to a National Account Customer, in which case Franchisor may itself, through an Affiliate, by a subcontractor or through another System franchisee provide the Services to the National Account Customer.
Franchisee will be deemed to have rejected Franchisor’s request to provide the Services to a National Account Customer if Franchisee has not accepted Franchisor’s request within one (1) Business Day, in which case Franchisor may itself, through an Affiliate, by a subcontractor or through another System franchisee provide the Services to the National Account Customer.
Franchisee acknowledges and agrees that Franchisor’s policies and procedures with respect to the provision of the Services to National Account Customers may change from time to time as detailed in the Operations Manual.
For 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.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, Section 2.4 of the Franchise Agreement addresses geographic considerations for National Account Customers. It states that National Account Customers are those who conduct business both inside and outside of a franchisee's territory and for whom 1-800-GOT-JUNK? has arranged services at multiple locations, either inside or outside the franchisee's territory.
This means that a 1-800-GOT-JUNK? franchisee may be asked to provide services to National Account Customers who have locations within their territory. However, the franchisee can decline to service a National Account Customer by providing written notice to 1-800-GOT-JUNK? within one business day of the service request. If the franchisee declines or does not respond within the specified time, 1-800-GOT-JUNK? can provide the services themselves, through an affiliate, a subcontractor, or another franchisee.
This arrangement allows 1-800-GOT-JUNK? to serve large, multi-location clients efficiently, but it also means that a franchisee may not have the exclusive right to service all customers within their territory. The franchisee should be aware that 1-800-GOT-JUNK?'s policies and procedures regarding National Account Customers can change over time, as detailed in the Operations Manual.