Does the covenant not to sue in the 1 800 Packouts franchise agreement extend to criminal proceedings?

According to the 2025 1 800 Packouts Franchise Disclosure Document, the covenant not to sue extends to criminal proceedings. Specifically, the franchisee, transferee, and guarantors agree not to participate in any civil, criminal, or administrative proceeding or investigation against any person or entity released under Section 1, except as required by law. This obligation applies across all forums, including courts and agencies.

This provision means that as a 1 800 Packouts franchisee, you are agreeing to not initiate or participate in any legal actions, including criminal proceedings, against the franchisor or related parties, provided those actions pertain to claims released under Section 1 of the agreement. The only exception to this is if you are legally compelled to participate. This clause is designed to protect the franchisor from legal challenges related to the released claims.

For a prospective 1 800 Packouts franchisee, this has significant implications. It is crucial to understand what claims are being released under Section 1, as the covenant not to sue applies specifically to those claims. It is also important to note the exception: if a law requires participation in a legal proceeding, this covenant does not prevent it. Franchisees should seek legal counsel to fully understand the scope and implications of this release and covenant before signing the agreement.