factual

Does the 1 800 Packouts FDD include State Agreement Riders?

1_800_Packouts Franchise · 2025 FDD

Answer from 2025 FDD Document

contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained

in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.

RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.

THE FOLLOWING PAGES IN THIS EXHIBIT ARE STATE-SPECIFIC RIDERS TO THE FRANCHISE AGREEMENT

RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN ILLINOIS

This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.

    1. Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business that you will operate under the Franchise Agreement was made in the State of Illinois and the Franchised Business will be located in Illinois, and/or (b) you are a resident of the State of Illinois.
    1. Waiver of Jury Trial. The following language is added to the end of the second paragraph of Section 17.D of the Franchise Agreement:

However, this waiver shall not apply to the extent prohibited by Section 705/41 of the Illinois Franchise Disclosure Act of 1987 or Illinois Regulations at Section 260.609.

  1. Limitation of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:

However, nothing in this Section shall shorten any period within which you may bring a claim under Section 705/27 of the Illinois Franchise Disclosure Act or constitute a condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act of 1987 or any other Illinois law (as long as the jurisdictional requirements of that Illinois law are met).

  1. Waivers Void. The following language is added as a new Section 17.A of the Franchise Agreement:

Nothing in this Agreement shall constitute a condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with any provision of the Illinois Franchise Disclosure Act of 1987 or any other Illinois law (as long as the jurisdictional requirements of that Illinois law are met).

No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.

[Signatures on following page]

IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.

2025 $274,481
2026 219,179

RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN MARYLAND

This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.

    1. Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of the State of Maryland, and/or (b) the Franchised Business that you will operate under the Franchise Agreement will be located in Maryland.
    1. Releases. The following language is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:

Any general release signed as a condition to transfer or renewal will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. Consent to Jurisdiction. The following language is added to the end of Section 17.A of the Franchise Agreement:

However, you may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. Governing Law. The following language is added to the end of Section 17.B of the Franchise Agreement:

However, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.

  1. Limitation of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:

Nothing in this Agreement shall act to reduce the three (3) year statute of limitations afforded to you for bringing a claim under the Maryland Franchise Registration and Disclosure Law.

  1. Acknowledgements. The following language is appended to the Franchise Agreement:

No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.

In connection with such appended language, the Franchise Agreement Acknowledgement sections contained at Sections 20.1 and 20.2 are hereby deleted.

7. Fee Deferral. Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement and the outlet is opened.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.

Short-term lease cost 133,893 200,074
Total $559,807 $606,205

RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN MINNESOTA

This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.

    1. Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the Franchised Business that you will operate under the Franchise Agreement will be located in Minnesota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Minnesota.
    1. Releases. The following is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:

Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law.

  1. Renewal and Termination. The following is added to the end of Sections 2.D and 15.B of the Franchise Agreement:

However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.

  1. Consent to Jurisdiction. The following is added to the end of Section 17.A of the Franchise Agreement:

However, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota. Nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.

  1. Governing Law. The following is added to the end of Section 17.B of the Franchise Agreement:

However, nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.

  1. Limitations of Claims. The following is added to the end of Section 17.G of the Franchise Agreement:

Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.

No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.

IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.

2024 2023
Current:
Federal $(133,183) $(262,480)
State 244 (78,963)
Total current (132,939) (341,443)

RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NEW YORK

This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.

    1. Background. We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business that you will operate under the Franchise Agreement was made in the State of New York, and/or (b) you are a resident of New York and will operate the Franchised Business in New York.
    1. Releases.

Source: Item 22 — CONTRACTS (FDD pages 66–67)

What This Means (2025 FDD)

Yes, the 2025 1 800 Packouts Franchise Disclosure Document (FDD) includes state-specific riders to the franchise agreement. These riders are designed to address specific legal requirements and regulations within certain states. The FDD contains riders for Illinois, New York, Washington, Minnesota, North Dakota, Maryland, Rhode Island, and California.

These state-specific riders modify certain sections of the standard 1 800 Packouts franchise agreement to ensure compliance with local laws. For example, the New York rider includes provisions to satisfy the non-waiver provisions of the New York General Business Law. The Washington rider references the Washington Franchise Investment Protection Act and clarifies that its provisions will prevail in case of a conflict of laws. Similarly, the Minnesota rider addresses releases, renewal, and termination in accordance with Minnesota law.

The inclusion of these state-specific riders in the 1 800 Packouts FDD indicates that the franchisor is aware of and responsive to the varying legal landscapes across different states. Prospective franchisees should carefully review the rider applicable to their state to understand how the standard franchise agreement is modified and what specific rights and obligations they have under local law. This is a common practice among franchisors to ensure legal compliance and to tailor the franchise agreement to the specific requirements of each state.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.