What is the 1 800 Packouts franchisee required to use in the operation of the Franchised Business?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
cility that is constructed in accordance with plans that we approve.
Management Systems. You must use in the development and operation of the Franchised Business the Management System that we specify 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. The Management Systems we require provide a business advantage over other systems and allow us to ensure uniformity across the franchise system. In addition, some third party administrators (TPAs) will require use of certain software, if this occurs we reserve the right to require you to use the software the TPA is requiring.
Insurance. You must obtain and maintain in force insurance coverage necessary to comply with all laws and as is customary for similar businesses in the state or jurisdiction in which the Franchised Business operates or as we may reasonably prescribe from time to time. We currently require you to maintain the following insurance coverage: (i) commercial general liability insurance ($1 million per occurrence, $2 million general aggregate limit, and $2 million products-completed operations limit, (ii) contractor's environmental liability ($1 million per occurrence and $2 million aggregate limit (aggregate may be shared with CGL policy)), (iii) property insurance (100% of replacement value of Facility and contents), (iv) bailee legal liability coverage ($1 million limit), (v) vehicle liability insurance ($1 million coverage, including hired and non-company owned auto coverage), (vi) workers' compensation coverage, (vii) cyber liability coverage ($1 million limit), (viii) employment practices liability coverage ($1 million limit), and (ix) excess liability coverage (over and above CGL, vehicle liability and employer liability) of $1 million. The insurance coverage must be maintained under one or more policies of insurance of the types and containing such terms and conditions and minimum liability protection in such amounts, as we specify and as are issued by insurance carriers rated not less than "A-" by A.M. Best Company.
You must maintain these policies during the entire term of your Franchise Agreement. We may increase or decrease the amounts of coverage required under these insurance policies and require different or additional kinds of insurance at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. All insurance policies must name us (and our officers, directors and employees) as additional insureds, contain a waiver by the insurance carrier of all subrogation rights against us, and must provide that we will receive 30 days advance written notice of any material modification, cancellation, or termination or expiration of the policy. You must provide us with a copy of the certificate of or other evidence of the procurement, renewal or extension of each insurance policy within 30 days after signing the Franchise Agreement and each year thereafter.
Approval Process. If you propose to purchase any brand, type, and/or model of products, supplies, services, and Operating Assets which is not then approved by us, you will first notify us and will submit to us, on our request, sufficient written specifications, photographs, drawings, samples, and/or other information for a determination by us of whether the brand, type, and/or model of products, supplies, services, and Operating Assets complies with our specifications and standards, which determination will be made and communicated to you within a reasonable time (typically, within 30 days).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, franchisees are required to use the Management System that 1 800 Packouts specifies for the development and operation of the Franchised Business. This system may include specific computer hardware, mobile devices, and software, potentially requiring franchisees to license proprietary software developed by 1 800 Packouts or others. 1 800 Packouts may also require that all or parts of the Management Systems be purchased or contracted through them or their designee. The FDD states that the Management Systems provide a business advantage and ensure uniformity across the franchise system. Additionally, some third-party administrators (TPAs) may require the use of certain software, and 1 800 Packouts reserves the right to require franchisees to use such software.
1 800 Packouts also mandates that franchisees obtain and maintain specific insurance coverage. This includes commercial general liability insurance ($1 million per occurrence, $2 million general aggregate limit, and $2 million products-completed operations limit), contractor's environmental liability ($1 million per occurrence and $2 million aggregate limit), property insurance (100% of replacement value), bailee legal liability coverage ($1 million limit), vehicle liability insurance ($1 million coverage), workers' compensation coverage, cyber liability coverage ($1 million limit), employment practices liability coverage ($1 million limit), and excess liability coverage ($1 million). These policies must be maintained with insurance carriers rated not less than "A-" by A.M. Best Company.
Furthermore, 1 800 Packouts has the right to require that furniture, fixtures, signs, and equipment (Operating Assets), as well as products, supplies, software, and other services, meet their established specifications. These items may need to be a specific brand, kind, or model and be purchased or leased only from 1 800 Packouts, its affiliates, or expressly approved suppliers. Franchisees must offer all services and products prescribed by 1 800 Packouts and must not offer any unapproved services or products. 1 800 Packouts may change these specifications periodically and designate specific products or services as optional or mandatory, with franchisees required to offer all mandatory items and maintain a sufficient supply of required products.