What is the purpose of the 1-800-GOT-JUNK? National Account Service Agreement?
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 FDD, the 1-800-GOT-JUNK? National Account Service Agreement is designed to facilitate agreements with entities that have multiple locations across different territories within the 1-800-GOT-JUNK? system. These entities are referred to as "National Accounts." The agreement aims to leverage the national presence of the 1-800-GOT-JUNK? franchise system for the benefit of franchisees who participate in the program.
The agreement establishes a program where 1-800-GOT-JUNK? LLC (the Franchisor) has the authority to negotiate and manage National Accounts. The Franchisor can act either as an agent or as a general contractor on behalf of the entire system. If acting as an agent, the Franchisee appoints the Franchisor as their attorney-in-fact. If acting as a general contractor, the Franchisor may subcontract services to the Franchisee, provided the Franchisee adheres to the terms of the National Account agreement and meets client expectations set by the Franchisor.
This setup allows 1-800-GOT-JUNK? to pursue large-scale partnerships that individual franchisees might not be able to secure on their own. By centralizing the negotiation and management of National Accounts, 1-800-GOT-JUNK? aims to create more opportunities for franchisees to provide services to established businesses with multiple locations, potentially increasing their revenue and market presence. Franchisees should understand the terms and conditions of the National Account agreements and ensure they can meet the required service standards to benefit fully from this program.