Can 1 800 Packouts estimate the future costs of the Management Systems?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Our modification of the specifications for the components of the Management Systems may require you to incur costs to purchase, lease and/or license new or modified computer hardware, mobile devices, and/or software and to obtain service and support for the Management Systems during the term of the Franchise Agreement. There are no limitations on the frequency and cost of these obligations of yours. We cannot estimate the future costs of the Management Systems (or additions or modification to the Management Systems) and the cost to you of obtaining the Management Systems (including software licenses) (or any additions or modification) may not be fully amortizable over the remaining term of the Franchise Agreement. Nonetheless, you must incur these costs in obtaining the computer hardware, mobile devices, and software comprising the Management Systems (or additions or modification). We have the right to charge a reasonable systems fee for software or systems modifications and enhancements specifically made for us that is licensed to you and other maintenance and support services that we or our affiliates provide to you related to the Management Systems.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–39)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, they cannot estimate the future costs of the Management Systems. The Management Systems may require franchisees to obtain computer hardware, mobile devices, and software, including licenses for proprietary software. Currently, franchisees are required to obtain Xactimate insurance repair estimating software and inventory software, along with at least one iPad, office computer, and printer/copier. The initial cost for these systems ranges from $500 to $5,000, depending on the size of the business and existing equipment.
However, 1 800 Packouts states that modifications to the specifications for these systems may necessitate further costs for new or modified hardware and software, as well as ongoing service and support. The FDD emphasizes that there are no limitations on the frequency and cost of these potential obligations.
1 800 Packouts explicitly states that they cannot estimate these future costs, and these costs may not be fully amortizable over the remaining term of the Franchise Agreement. Franchisees are obligated to incur these costs to maintain the required Management Systems. 1 800 Packouts retains the right to charge a reasonable systems fee for software or system modifications and enhancements, as well as for maintenance and support services related to the Management Systems.