Who determines when, how, and where the payments deposited into the Brand Fund for 1 800 Packouts will be spent?

According to 1 800 Packouts' 2025 Franchise Disclosure Document, the franchisor has sole discretion in determining when, how, and where the payments deposited into the Brand Fund will be spent. 1 800 Packouts also selects the types of media used and the location of advertising campaigns administered through the Brand Fund. The media used may include print, radio, television, telephone, smart phone, social media and Internet. The funds may also be used for general public relations, business development, and to build brand awareness. All advertising and marketing materials will be prepared by 1 800 Packouts or by outside agencies.

This means that while franchisees are required to contribute up to 3% of their gross sales to the Brand Fund, 1 800 Packouts ultimately controls how those funds are utilized. Franchisees do not have direct input or control over the Brand Fund's expenditures. 1 800 Packouts is a nationwide brand and intends to use the fund to help promote the image and good will of the entire brand through local, regional and national marketing campaigns.

1 800 Packouts may spend more or less than the total contributions from franchisees in any given fiscal year. Unused funds can be carried over to the next fiscal year, and 1 800 Packouts can borrow from lenders or invest surpluses for future use. An annual, unaudited statement of monies collected and costs incurred by the Brand Fund will be made available to franchisees upon written request.

1 800 Packouts has the right to terminate the Brand Fund with 30 days' written notice to franchisees. In the event of termination, unspent monies will be distributed to 1 800 Packouts and its franchisees in proportion to their contributions over the preceding 12-month period. 1 800 Packouts also retains the right to reinstate the Brand Fund under the same terms and conditions.