After the association with 1 800 Packouts ends, what geographic areas are covered by the non-compete agreement?
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.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, for two years after a franchisee's association with 1 800 Packouts ends, the franchisee is restricted from engaging in any Competitive Business without prior written consent from 1 800 Packouts. This restriction applies to owning, managing, being employed by, advising, making loans to, or having any interest in a Competitive Business.
The geographic scope of this non-compete agreement includes (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.
This means that a former 1 800 Packouts franchisee is significantly limited in their ability to start or work for a competing business in or near their original territory, other franchisees' territories, or near any 1 800 Packouts storage facilities. This non-compete clause aims to protect 1 800 Packouts' market share and business interests by preventing former franchisees from using their knowledge and experience gained during their franchise term to compete against the brand. Franchisees should carefully consider these restrictions before entering into a franchise agreement, as they could impact their future career options.