Does the 1 800 Packouts agreement allow for exceptions to the non-compete clause after the association ends?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- **5.
Noncompete After Association Ends.** For two years after your association with us ends for any reason, you may not, without our prior written consent:
(a) directly or indirectly own, manage, engage in, be employed by, advise, make loans to, or have any other interest in any Competitive Business located within or serving customers that are located within (i) the territory specified on Exhibit A or any territory of another Franchised Business, (ii) a 50-mile radius from the borders of the territory specified on Exhibit A, or (iii) a 50-mile radius from any 1-800- PACKOUTS storage facility operated by Franchisor or its affiliates; or
(b) solicit for employment any person who at any time within the immediate past 12 months has been employed by us, Franchisor or its affiliates, or by any of Franchisor's franchisees.
**6.
Remedies**.
If you breach or threaten to breach this Agreement, you agree that we will be entitled to injunctive relief (without posting bond) as well as a suit for damages.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, the 1 800 Packouts franchise agreement does allow for exceptions to the non-compete clause after the association ends, but only with prior written consent from 1 800 Packouts. Specifically, for two years after the franchise agreement ends for any reason, the franchisee may not engage in any Competitive Business without written consent from 1 800 Packouts.
This restriction includes owning, managing, being employed by, advising, making loans to, or having any interest in a Competitive Business. The restriction applies to businesses located within or serving customers within the franchisee's territory, any other franchisee's territory, a 50-mile radius from those territories, or a 50-mile radius from any 1-800-PACKOUTS storage facility operated by the franchisor or its affiliates. The franchisee is also prohibited from soliciting for employment any person who has been employed by 1 800 Packouts, its affiliates, or its franchisees within the past 12 months.
It is important to note that if a franchisee breaches or threatens to breach the agreement, 1 800 Packouts is entitled to injunctive relief (without posting bond) and can also sue for damages. This clause highlights the importance of understanding the full scope and limitations of the non-compete agreement before entering into a franchise agreement with 1 800 Packouts.