Can a 1-800-GOT-JUNK? franchisee be required to add a National Account as an additional insured on their insurance policies?

According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, franchisees may be required to obtain and maintain specific insurance levels mandated by National Accounts. This includes the possibility of adding the National Account or 1-800-GOT-JUNK?'s assignee as a named insured or additional insured on the franchisee's insurance policies. This requirement is part of the terms that 1-800-GOT-JUNK? may establish in National Account agreements. These terms are considered commercially viable for the 1-800-GOT-JUNK? system.

This condition means that a 1-800-GOT-JUNK? franchisee could face increased insurance costs to meet the demands of a National Account. The franchisee must comply with these insurance requirements to service the National Account. Failure to maintain the required insurance coverage could result in the franchisee being unable to fulfill the service agreement with the National Account, potentially leading to a loss of business and revenue.

Furthermore, 1-800-GOT-JUNK? retains the authority to negotiate and manage National Accounts on behalf of the entire system. This includes setting service levels, standards, and other requirements. Franchisees must adhere to these terms to participate in the National Account program. This setup allows 1-800-GOT-JUNK? to leverage the collective network of franchisees to secure and manage large-scale contracts, potentially benefiting the franchisees through increased business opportunities, albeit with specific compliance obligations.