What conditions must be met to renew a 1 800 Packouts franchise agreement?
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 the 2025 1 800 Packouts Franchise Disclosure Document, a franchisee has the option to renew their license for an additional 10-year term if they meet certain conditions. To renew, the franchisee must provide written notice of their election to renew at least 60 days, but no more than 6 months, before the end of the current term. They must also not be in material breach of the franchise agreement or any other agreements with 1 800 Packouts.
Additionally, the franchisee must have substantially complied with all the conditions and requirements of the franchise agreement and any other agreements with 1 800 Packouts or its affiliates throughout the term of those agreements. Subject to applicable law, 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.
Each renewal will be effectuated by the execution of 1 800 Packouts' then-current form of franchise agreement, along with any other agreements, instruments, and documents customarily used by 1 800 Packouts in granting franchises. The terms of the renewed agreement may differ from the original agreement, and the franchisee will not receive the right to enter into an additional renewal term. A renewal fee of $10,000 is payable upon renewal of the license. Franchisees should carefully review the then-current franchise agreement to understand any changes in terms or conditions.