Where in the 1 800 Packouts Disclosure Document can I find information about advertising obligations?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]
Advertising
Our Marketing. We are not contractually obligated to conduct or develop any advertising or marketing programs for the System. We may, but are not obligated to, periodically formulate, develop, produce, and conduct advertising or promotional programs in such form and media as we determine to be most effective. We may, at our option, make available to you for you to purchase approved advertising and promotional materials, including signs, posters, collaterals, etc. that we have prepared. We currently produce marketing materials which you may purchase from us or through an approved vendor.
We have not conducted media advertising for 1-800-PACKOUTS. If we conduct media advertising, we are not required to spend any amount on advertising in the market in which your Franchised Business is located.
Brand Fund. You must contribute the Marketing Fee an amount designated by us up to 3% of your Gross Sales to the Brand Fund. We will administer the Brand Fund. The Franchised Business owned by us or our affiliates will contribute to the Brand Fund but does not have a set amount it contributes.
We will determine, in our sole discretion, when, how and where the payments deposited into the Brand Fund will be spent. We select the types of media used and the location of the advertising campaigns administered through the Brand Fund. We use or may use the following media: print, radio, television, telephone, smart phone, social media and Internet. We may also use the funds for general public relations, for business development, and to otherwise obtain and build brand awareness. All advertising and marketing materials will be prepared by us or by outside advertising/public relations/promotional agencies. We will not use the advertising fund for soliciting new franchise sales.
Digital Marketing. We or our affiliates may, in our sole discretion, establish and operate websites, social media accounts (such as Facebook, Twitter, Instagram, Pinterest, etc.), applications, keyword or adword purchasing programs, accounts with websites featuring gift certificates or discounted coupons (such as Groupon, Living Social, etc.), mobile applications, or other means of digital advertising on the Internet or any electronic communications network (collectively, "Digital Marketing") that are intended to promote the Marks, your Franchised Business, and the entire network of Franchised Businesses. We will have the sole right to control all aspects of any Digital Marketing, including those related to your Franchised Business.
Unless we consent otherwise in writing, you may not, directly or indirectly, conduct or be involved in any Digital Marketing that use the Marks or that relate to the Franchised Business or the network. If we do permit you to conduct any Digital Marketing, you or your employees must comply with any policies, standards, guidelines, or content requirements that we establish periodically and must immediately modify or delete any Digital Marketing that we determine, in our sole discretion, is not compliant with such policies, standards, guidelines, or requirements. We may withdraw our approval for any Digital Marketing at any time. We will also hold you responsible for the actions of any employees. Should we discover any employees are performing Digital Marketing or posting any private information on social media you will be held liable for their breaches. You are the employer for any employees and you are responsible for actions of employees.
You are not authorized to have a website for your Franchised Business. As part of our Digital Marketing, we or one of our designees will operate and maintain the 1-800-Packouts website, which will include basic information related to the Franchised Business. Currently, we permit you to have a Facebook page dedicated to your Franchised Business but we reserve the right to review the content and require changes should we, in our sole discretion, deem it necessary.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, Item 11 covers the franchisor's assistance, advertising, computer systems, and training. Specifically, the section titled "Advertising" details the obligations and options for advertising and marketing the 1 800 Packouts business.
The FDD states that 1 800 Packouts is not contractually obligated to conduct advertising or marketing programs. However, they may choose to develop and conduct advertising or promotional programs. They may also offer approved advertising and promotional materials for franchisees to purchase. Currently, 1 800 Packouts produces marketing materials that franchisees can purchase from them or an approved vendor.
Franchisees are required to contribute a Marketing Fee of up to 3% of their Gross Sales to the Brand Fund. 1 800 Packouts has sole discretion over how the Brand Fund is spent, including the types of media used and the location of advertising campaigns. The FDD specifies that media used may include print, radio, television, telephone, smart phone, social media, and the Internet. The funds may also be used for public relations, business development, and building brand awareness. The advertising fund will not be used for soliciting new franchise sales.
The 1 800 Packouts FDD also addresses digital marketing. Franchisees are generally prohibited from conducting digital marketing that uses the 1 800 Packouts marks or relates to the franchised business, unless they receive written consent. If digital marketing is permitted, franchisees must comply with 1 800 Packouts' policies and guidelines, and 1 800 Packouts can withdraw approval for any digital marketing at any time. Franchisees are not authorized to have a website for their franchised business, but 1 800 Packouts will operate and maintain the 1-800-Packouts website, which will include basic information about the franchised business. Currently, franchisees are permitted to have a Facebook page, but 1 800 Packouts reserves the right to review the content and require changes.