Does the 1-800-GOT-JUNK? Franchise Agreement specify any geographic limits on serving 'National Account Customers' as described 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 addresses the provision of services to 'National Account Customers,' defining them as entities with multiple locations both inside and outside a franchisee's territory for which 1-800-GOT-JUNK? has arranged services. The agreement stipulates that 1-800-GOT-JUNK? may require a franchisee to enter into a National Account Service Agreement to serve these customers within their territory.
While the franchisee is obligated to provide services to National Account Customers, they have the option to decline the service request. If a franchisee chooses to decline, they must provide written notice within one business day of the request. In such cases, 1-800-GOT-JUNK? reserves the right to provide the services themselves, either through an affiliate, a subcontractor, or another franchisee within the system. The agreement clarifies that failure to respond within one business day is considered a rejection of the service request.
This arrangement ensures that National Account Customers receive consistent service across various locations, even if those locations fall within different franchise territories. It also provides 1-800-GOT-JUNK? with the flexibility to meet the needs of large, multi-location clients while allowing individual franchisees to focus on their core business if they choose not to participate in serving a particular national account. Franchisees should be aware that 1-800-GOT-JUNK?'s policies and procedures regarding National Account Customers are subject to change as detailed in the Operations Manual.