Is a 1 800 Packouts franchisee obligated to participate in the advisory council?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| diem expenses of any personnel providing on site assistance. If we provide on-site opening assistance and you do not request it, we will not require you to pay these fees and expenses. | |||
| Additional Guidance and Assistance | Per diem fees and charges we establish, currently $300 per day. | As incurred | Payable if we provide additional guidance or assistance upon your request. |
| Testing Fee for Products and Services | Our then-current reasonable fees. Currently, we intend to charge our actual cost of testing the proposed product or evaluating the proposed service, including personnel and travel costs. | Upon demand | Payable if you wish to offer products or use any supplies, equipment, or services that we have not approved, whether or not we approve the item or service. |
| Renewal Fee | $10,000 | At the time of renewal | Payable if you enter into a renewal term for your license |
| Transfer fee | 50% of the Initial Franchise Fee at the time of transfer. Note, any sales commission owed as a result of your transfer shall remain your obligation, in addition to the Transfer Fee. | At the time of transfer | Payable upon transfer of the Franchise Agreement, the Franchised Business, or a controlling interest in you. |
| Advisory Council Fees | Will vary based on programs | As incurred | If we establish a franchisee advisory council, you must participate in it and pay any dues assessed for administration of related programs. |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, if 1 800 Packouts establishes a franchisee advisory council, franchisees must participate in it and pay any dues assessed for the administration of related programs. The fees will vary based on the programs. These fees are in addition to other fees that a franchisee will incur.
Franchise advisory councils are common in the franchise industry. They provide a formal mechanism for franchisees to communicate with the franchisor and provide feedback on the system. Mandatory participation ensures that the council represents a broad range of franchisee perspectives.
For a prospective 1 800 Packouts franchisee, this means they should budget for potential advisory council fees and be prepared to actively engage with the council if it is established. It is important to understand the potential time commitment and financial obligations associated with council participation. Franchisees should inquire about the typical activities and expected time commitment for council members.