Does the 1 800 Packouts franchise agreement outline specific management systems?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
D. MANAGEMENT SYSTEMS
- (1) You agree to use in the development and operation of the Franchised Business the management system, computer hardware, mobile devices, applications, and software ("Management Systems") that we specify from time to time.
You acknowledge that we may modify such specifications and the components of the Management Systems from time to time.
As part of the Management Systems, we may require you to obtain specified computer hardware, mobile devices, and/or applications or software, including, without limitation, a license to use proprietary software developed by us or others.
We may also require that all or parts of the Management Systems be purchased or contracted through us or our designee.
Our modification of such 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 this Agreement.
You acknowledge that we cannot estimate the future costs of the Management Systems (or additions or modifications thereto) and that the cost to you of obtaining the Management Systems (including software licenses) (or additions or modifications thereto) may not be fully amortizable over the remaining term of this Agreement.
Nonetheless, you agree to incur such costs in connection with obtaining the computer hardware and software comprising the Management Systems (or additions or modifications thereto).
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the franchise agreement does address management systems. Specifically, franchisees are required to use the management system, computer hardware, mobile devices, applications, and software that 1 800 Packouts specifies. These are used in the development and operation of the franchised business.
The 1 800 Packouts franchise agreement indicates that these specifications and components of the management systems may change over time. As part of these systems, franchisees may be required to obtain specified computer hardware, mobile devices, and/or software, potentially including licenses for proprietary software. These items may need to be purchased or contracted through 1 800 Packouts or their designee.
Modifications to the management systems may require franchisees to incur costs to purchase, lease, and/or license new or modified computer hardware, mobile devices, and/or software, as well as to obtain service and support. The agreement states that 1 800 Packouts cannot estimate the future costs of these systems or modifications, and the costs may not be fully amortizable over the remaining term of the agreement. Despite this uncertainty, franchisees agree to incur such costs.