How are 'National Account Customers' handled under the 1-800-GOT-JUNK? Franchise Agreement, 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.
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.
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 how National Account Customers are handled. These customers are defined as those with multiple locations, offices, franchises, or stores, operating both inside and outside a franchisee's territory, for whom 1-800-GOT-JUNK? has arranged services at multiple locations. These can include corporations, non-profits, and government entities.
A key aspect of this section is that 1-800-GOT-JUNK? may require a franchisee to enter into a National Account Service Agreement to serve these customers within their territory. However, the franchisee has the option to decline such service requests by providing written notice within one business day. If the franchisee declines or is deemed to have rejected the request by not responding within one business day, 1-800-GOT-JUNK? can provide the services themselves, through an affiliate, a subcontractor, or another franchisee.
This arrangement means that while franchisees may gain access to large National Account Customers, they are not obligated to service them if they choose not to. However, declining these services could result in 1-800-GOT-JUNK? assigning the work to another party, potentially impacting the franchisee's revenue. Franchisees must stay informed about 1-800-GOT-JUNK?'s policies and procedures regarding National Account Customers, as these may change over time as detailed in the Operations Manual.