After the association with 1 800 Packouts ends, for how long is the noncompete agreement in effect?
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 1 800 Packouts's 2025 Franchise Disclosure Document, the noncompete agreement lasts for two years after the franchise association ends. During this two-year period, the franchisee is restricted from engaging in any Competitive Business without prior written consent from 1 800 Packouts. This includes owning, managing, being employed by, advising, making loans to, or having any interest in a Competitive Business. These restrictions apply within the territory specified in Exhibit A, any territory of another Franchised Business, a 50-mile radius from the borders of the territory specified in Exhibit A, or a 50-mile radius from any 1-800-PACKOUTS storage facility operated by the franchisor or its affiliates.
Additionally, the franchisee is prohibited from soliciting for employment any person who has been employed by 1 800 Packouts, its affiliates, or any of its franchisees within the 12 months before the end of the franchise agreement. This prevents a former franchisee from poaching employees who could give them an advantage in a competing business.
It is important to note that the FDD includes a rider for franchisees in North Dakota, stating that covenants not to compete are generally considered unenforceable in North Dakota, but 1 800 Packouts will seek to enforce them to the extent enforceable. If a franchisee breaches or threatens to breach the noncompete agreement, 1 800 Packouts is entitled to injunctive relief and can sue for damages.