What is the duration of the look-back period for employee solicitation restrictions in the 1 800 Packouts agreement?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) For two years after the expiration or termination of this Agreement or an approved transfer to a new franchisee, you and your Owners may not, without our prior written consent, (a) directly or indirectly own, manage, engage in, be employed by, advise, make loans to, or have any other interest in any Competitive Business located within or serving customers that are located within (i) Your Territory or any territory of another Franchised Business, (ii) a 50-mile radius from the borders of Your Territory, or (iii) a 50-mile radius from any Facility operated by us or our affiliates or (b) solicit for employment any person who at any time within the immediate past 12 months has been employed by us, or our affiliates, or by any of our franchisees. With respect to the Owners, the time period in this Section B. will run from the expiration, termination, or Transfer of this Agreement or from the termination of the Owner's relationship with you, whichever occurs first.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, for two years after the expiration or termination of the Franchise Agreement, the franchisee and their owners are restricted from soliciting for employment any person who, at any time within the immediate past 12 months, has been employed by 1 800 Packouts, its affiliates, or any of its franchisees. This restriction requires the franchisee to avoid actively seeking to hire individuals who were recently associated with the 1 800 Packouts system.
This provision is designed to protect 1 800 Packouts from losing trained staff to former franchisees who might use their knowledge of the business to compete. The 12-month look-back period means that even if an employee has left the 1 800 Packouts system, a franchisee cannot solicit them for two years following the termination or expiration of their agreement.
For a prospective franchisee, this means that after leaving the 1 800 Packouts system, they must be careful about hiring former employees or staff from other franchisees. Violating this clause could lead to legal repercussions from 1 800 Packouts. The restriction applies not only within the franchisee's territory but also within a 50-mile radius of their former territory, any other franchised business's territory, or any facility operated by 1 800 Packouts or its affiliates, further broadening the scope of this restriction.