What fee is payable to 1 800 Packouts upon renewal of the license?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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2. TERM
A. INITIAL TERM
The initial term of the License (the "Initial Term") shall begin on the Agreement Date and expire on the 10th anniversary of the Agreement Date.
B. RENEWAL OF FRANCHISE
You may, at your option, renew the License for an additional 10-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term"), provided that:
- (1) You have given us written notice of an election to renew not less than 60 days months nor more than 6 months prior to the end of the initial term and any renewal term of this Agreement;
- (2) You are not at such time in material breach of any of your obligations under this Agreement or any other agreement with us;
- (3) You have substantially complied on a timely basis with all of the conditions and requirements of this Agreement and any other agreements with us or our affiliates throughout the terms of such agreements; and
- (4) Subject to applicable law, you and your Owners execute a general release, in a form prescribed by us, of any claims against us and our affiliates, and our and their officers, directors, agents and employees.
Each renewal will be effectuated by execution of our then-current form of franchise agreement, and all other agreements, instruments and documents then customarily used by us in gra
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, a franchisee must pay a renewal fee of $10,000 to renew their license. This fee is payable upon renewal of the license for an additional 10-year term.
To be eligible for renewal, the 1 800 Packouts franchisee must provide written notice of their election to renew the License not less than 60 days and not more than 6 months prior to the end of the current term. They must also not be in material breach of the Franchise Agreement or any other agreement with 1 800 Packouts. Substantial compliance with all requirements of the agreements is also required for the renewal.
As a condition of renewal, the franchisee and their Owners must execute a general release of any claims against 1 800 Packouts and its affiliates. The renewal will be effectuated by the execution of 1 800 Packouts' then-current form of franchise agreement, which may have terms that differ from the original agreement. The renewal franchise agreement does not grant the right to enter into any additional renewal term.