Can 1 800 Packouts establish new standards for the implementation of technology in the System?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) You acknowledge and agree that changes to technology are dynamic and not predictable within the term of this Agreement.
In order to provide for inevitable but unpredictable changes to technological needs and opportunities, you agree that we shall have the right to establish, in writing, reasonable new standards for the implementation of technology in the System, and you agree to abide by those reasonable new standards we establish as if this Section D were periodically revised by it for that purpose.
- (3) You also must comply, at your expense, with all laws, industry standards, and payment card provider standards relating to the security of the Management Systems and data collected from customers, including, without limitation, the Payment Card Industry Data Security Standards.
You are responsible for any and all consequences that may arise if the system is not properly operated, maintained and upgraded, if the Management Systems (or any of its components) fails to operate on a continuous basis or as we or you expect, or if there is a data breach.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts has the right to establish new technology standards for its franchise system. The FDD states that franchisees acknowledge that technological changes are dynamic and unpredictable during the term of the agreement. To address these inevitable changes, 1 800 Packouts can set reasonable new standards for technology implementation within the system. Franchisees must then comply with these new standards as if they were part of the original agreement.
This means that as technology evolves, 1 800 Packouts can mandate that franchisees adopt new software, hardware, or systems to remain current and competitive. These changes will be communicated to franchisees in writing. Franchisees are obligated to abide by these standards.
This clause protects 1 800 Packouts's ability to maintain a consistent and up-to-date brand image and service quality across all franchise locations. However, it also places a responsibility on franchisees to invest in and adapt to new technologies as required by 1 800 Packouts, potentially incurring additional costs. Franchisees are also responsible for complying with all laws and industry standards related to data security, including the Payment Card Industry Data Security Standards, and for any consequences arising from system failures or data breaches.