What is the duration of the License Agreement for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
In the License Agreement, Packout Holdings authorized us to use the Marks in connection with the offer, sale, and support of Franchised Businesses. The License Agreement does not contain any significant limitations on our right to use or license the Marks to you and is perpetual in duration and may be terminated unilaterally by either party only upon a material breach of the License Agreement. Upon termination of the License Agreement, we must immediately discontinue the use of the Marks and assign to Packout Holdings all of our franchise agreements licensing the use of the Marks, and Packout Holdings has agreed to assume all obligations under such agreements arising from and after their assignment.
Source: Item 13 — TRADEMARKS (FDD pages 44–45)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the License Agreement between Packout Holdings and 1 800 Packouts, which grants 1 800 Packouts the right to use the Marks, is perpetual in duration. This means the agreement continues indefinitely unless terminated due to a material breach. Either party can unilaterally terminate the License Agreement if the other materially breaches the agreement.
Upon termination of the License Agreement, 1 800 Packouts must immediately stop using the Marks. Additionally, 1 800 Packouts must assign all franchise agreements that license the use of the Marks to Packout Holdings. Packout Holdings has agreed to assume all obligations under these franchise agreements from the date of assignment forward.
This arrangement ensures that franchisees' rights to use the 1 800 Packouts trademarks are protected even if the License Agreement between 1 800 Packouts and Packout Holdings is terminated. Packout Holdings would step in to maintain the franchise agreements, providing continuity for franchisees. This is a somewhat unusual arrangement, as typically the franchisor owns the trademarks directly and licenses them to franchisees.