What conditions must a 1 800 Packouts franchisee meet to be eligible to renew their license?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
omer to you.
2. TERM
A. INITIAL TERM
The initial term of the License (the "Initial Term") shall begin on the Agreement Date and expire on the 10th anniversary of the Agreement Date.
B. RENEWAL OF FRANCHISE
You may, at your option, renew the License for an additional 10-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term"), provided that:
- (1) You have given us written notice of an election to renew not less than 60 days months nor more than 6 months prior to the end of the initial term and any renewal term of this Agreement;
- (2) You are not at such time in material breach of any of your obligations under this Agreement or any other agreement with us;
- (3) You have substantially complied on a timely basis with all of the conditions and requirements of this Agreement and any other agreements with us or our affiliates throughout the terms of such agreements; and
- (4) Subject to applicable law, you and your Owners execute a general release, in a form prescribed by us, of any claims against us and our affiliates, and our and their officers, directors, agents and employees.
Each renewal will be effectuated by execution of our then-current form of franchise agreement, and all other agreements, instruments and documents then customarily used by us in gra
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, a franchisee has the option to renew their license for an additional 10-year term, provided certain conditions are met. To be eligible for renewal, the franchisee must provide written notice of their intent to renew to 1 800 Packouts not less than 6 months and no more than 6 months before the end of the current term.
Additionally, the franchisee must not be in material breach of any obligations under the Franchise Agreement or any other agreement with 1 800 Packouts. They must also have substantially complied with all conditions and requirements of the agreements throughout their terms. This indicates that consistent adherence to the franchise's operational standards and financial obligations is crucial for renewal eligibility.
Finally, the franchisee and their owners must execute a general release, in a form prescribed by 1 800 Packouts, of any claims against 1 800 Packouts, its affiliates, and their respective officers, directors, agents, and employees, subject to applicable law. Upon renewal, the franchisee will be required to execute 1 800 Packouts' then-current form of franchise agreement, which may have terms that differ from the original agreement, and pay a renewal fee of $10,000. The renewal agreement does not include the right to another renewal term.