What criteria must a transferee meet to be approved to operate a 1 800 Packouts Franchised Business?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
If you and your Owners are in full compliance with this Agreement, then subject to the other provisions of this Section 14 (Transfer), we will approve a transfer that meets all the applicable requirements of this Section. The proposed transferee and its Owners must be individuals of good character and otherwise meet our then applicable standards for Franchised Business franchisees. A sale or transfer of ownership, possession or control of the Franchised Business may be made only in conjunction with a transfer of this Agreement. If the transfer is of this Agreement, of the Franchised Business or a controlling interest in you ("controlling interest in you" means 33⅓% or more of your voting shares, ownership interests or other voting rights if you are an Entity owned by three or more persons; otherwise, 50% or more of your voting shares or other voting rights or ownership interests), or is one of a series of transfers which in the aggregate constitute the transfer of this Agreement, the Franchised Business or a controlling interest in you, all of the following conditions must be met prior to or concurrently with the effective date of the transfer:
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, a transfer of a Franchised Business is contingent upon meeting specific conditions. The proposed transferee and their owners must demonstrate good character and meet the then-current standards that 1 800 Packouts has in place for new franchisees.
For a transfer to be approved, the existing franchisee and their owners must be in full compliance with the existing Franchise Agreement. The sale or transfer of the business can only occur alongside the transfer of the Franchise Agreement itself.
If the transfer involves the agreement, the business, or a controlling interest (defined as 33 1/3% or more of voting shares if the entity has three or more owners, or 50% or more if it has fewer), all conditions must be met before the transfer's effective date. This ensures that 1 800 Packouts maintains control over who operates its franchises and that the new operators meet their standards.