Does 1 800 Packouts have employment agreements with all officers and employees, or only certain ones?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
E. HIRING AND TRAINING OF EMPLOYEES
You must hire all employees and staff of the Franchised Business, be exclusively responsible for the terms of their employment and compensation, and be exclusively responsible for ensuring that such employees and staff are trained in accordance with the System in the proper operation of the Franchised Business. Your Franchised Business must be adequately staffed to meet reasonably anticipated demand for services. In the event your Manager ceases to be employed by you and you or your Operating Principal cannot supervise on-site the day-to-day operation of the business, you must have a new manager attend and successfully complete System/Procedure Training within 60 days of such termination. You agree that we are not the employer for any employees you hire. All management, personnel and training requirements are at your discretion and are your responsibility. We will hold you solely liable and responsible for any breach of this agreement or failure to follow our System by any employees.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 1 800 Packouts does not specify whether the franchisor requires franchisees to have employment agreements with all officers and employees, or only certain ones. However, the FDD does state that the franchisee is responsible for hiring and managing their own employees.
Specifically, the 1 800 Packouts franchisee is responsible for the terms of employment, compensation, and training of their employees. The franchisee must also ensure that the business is adequately staffed to meet demand. If the manager leaves, the franchisee must ensure a new manager completes training within 60 days if the Operating Principal cannot supervise the business.
The FDD emphasizes that 1 800 Packouts is not the employer of the franchisee's employees, and the franchisee is solely liable for any breaches of the agreement or failures to follow the system caused by their employees. This indicates that the franchisee has discretion over employment matters, including whether to use employment agreements.
Because the FDD does not specify whether employment agreements are required, prospective franchisees should ask 1 800 Packouts directly about their expectations or requirements regarding employment agreements with officers and employees. This will help clarify the franchisee's obligations and ensure compliance with the franchise agreement.