Does the 1-800-GOT-JUNK? Franchisor reserve the right to solicit National Accounts?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS:
A. Franchisor and Franchisee have entered into a franchise agreement dated as of the date noted on the signature page hereto (the “Franchise Agreement”) whereby Franchisee has been granted the right to carry on a Franchised Business in the 1-800-GOT-JUNK? franchise system (the “System”).
B. The existence of multiple franchisees in the System creates opportunities to enter into agreements with other entities that have multiple locations in more than one territory in the System (each, a “National Account”) for the benefit of participating franchisees by leveraging the national scope of the System.
C. The establishment of National Accounts is best facilitated by the establishment of a program, upon the terms set out herein, whereby Franchisor will have the authority to negotiate and manage National Accounts on behalf of the System as a whole, whether acting as agent or as principal (the “Program”).
Now therefore, Franchisor, Commercial Services and Franchisee agree as follows:
1. Interpretation. All capitalized terms not otherwise defined herein shall have the same meaning as under the Franchise Agreement.
2. Agency or General Contractor. Franchisor, Commercial Services, or an affiliate of either of them, may enter into National Account agreements as agent or as general contractor as follows:
(a) Where Franchisor, Commercial Services or the affiliate enters into a National Account agreement as agent, it shall act as agent on behalf of Franchisee, and Franchisee hereby appoints Franchisor, Commercial Services or the affiliate, as the case may be, as its attorney-in-fact to do so.
(b) Where Franchisor, Commercial Services or the affiliate enters into a National Account agreement as general contractor, it shall enter into such agreement as principal, and may subcontract the services to such National Account to Franchisee, provided that Franchisee services such National Account in accordance with the terms and conditions of the particular National Account agreement and is otherwise in compliance with the obligations of client expectations set by Franchisor from time to time.
3. National Account Terms.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, the franchisor, 1-800-GOT-JUNK? LLC, along with 1-800-GOT-JUNK? Commercial Services (USA) LLC, may negotiate and manage National Accounts on behalf of the entire franchise system. This is facilitated through a program where the franchisor has the authority to act either as an agent or as a general contractor. The existence of multiple franchisees allows 1-800-GOT-JUNK? to pursue agreements with entities that have multiple locations across different territories within the 1-800-GOT-JUNK? system. This leverages the national presence of the brand for the benefit of franchisees.
When acting as an agent, 1-800-GOT-JUNK?, Commercial Services, or an affiliate represents the franchisee and is appointed as their attorney-in-fact to enter into National Account agreements. Alternatively, when acting as a general contractor, 1-800-GOT-JUNK?, Commercial Services, or an affiliate enters into agreements as the principal party and may subcontract the services to the franchisee. In this case, the franchisee must provide services to the National Account according to the terms of the agreement and comply with client expectations set by 1-800-GOT-JUNK?.
This arrangement means that as a 1-800-GOT-JUNK? franchisee, you may be required to participate in National Account programs managed by the franchisor. While this could provide access to larger clients and increased business volume, it also means you must adhere to the terms and conditions set by 1-800-GOT-JUNK? for servicing these accounts. The franchisor has the discretion to determine how these National Accounts are managed and which franchisees participate, so understanding the specifics of these agreements is crucial for prospective franchisees.