Is the 1 800 Packouts General Release influenced by the Franchisor?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on |
|---|
| by |
| ("Franchisee"), |
| ("Guarantors"), |
| ("Transferee") as a condition of (1) |
| the transfer of the Franchise Agreement |
| dated [month] [day], [year] |
| between 1-800-Packouts Holdco, LLC ("Franchisor") and Franchisee ("Franchise Agreement"); or |
| (2) |
| the execution of a successor Franchise Agreement by Franchisee and Franchisor. (If this Release is |
| executed under the conditions set forth in (2) above, all references in this Release to "Transferee" should |
| be ignored.) |
| This Release does not apply to claims arising under the Washington Franchise Investment |
| Protection Act, chapter 19.100 RCW, or the rules adopted thereunder. |
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- Release by Franchisee, Transferee, and Guarantors. Franchisee and Transferee (on behalf of themselves and their parents, subsidiaries, and affiliates and their respective past and present officers, directors, shareholders, managers, members, agents, and employees, in their corporate and individual capacities), and Guarantors (on behalf of themselves and their respective heirs, representatives, successors and assigns) (collectively, the "Releasors") freely and without any influence forever release (i) Franchisor, (ii) Franchisor's past and present officers, directors, shareholders, managers, members, agents, and employees, in their corporate and individual capacities, and (iii) Franchisor's parent, subsidiaries, and affiliates and their respective past and present officers, directors, shareholders, managers, members, agents, and employees, in their corporate and individual capacities (collectively, the "Released Parties"), from any and all claims, debts, demands, liabilities, suits, judgments, and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively, "Claims"), which any Releasor ever owned or held, now owns or holds, or may in the future own or hold, including, without limitation, claims arising under federal, state, and local laws, rules, and ordinances and claims arising out of, or relating to, the Franchise Agreement and all other agreements between any Releasor and Franchisor or Franchisor's parent, subsidiaries, or affiliates, arising out of, or relating to any act, omission or event occurring on or before the date of this Release, unless prohibited by applicable law.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the General Release is influenced by the franchisor. The document states that the General Release is executed as a condition of either the transfer of the Franchise Agreement between 1-800-Packouts Holdco, LLC ("Franchisor") and Franchisee, or the execution of a successor Franchise Agreement by Franchisee and Franchisor. This indicates that the franchisor requires this release as part of these specific transactions.
The General Release involves the franchisee, any guarantors, and any transferee releasing the franchisor from all claims, debts, demands, liabilities, suits, judgments, and causes of action. This release covers a broad range of potential claims, whether known or unknown, vested or contingent, that the franchisee might have against 1 800 Packouts. The release extends to claims arising under federal, state, and local laws, as well as those related to the Franchise Agreement and other agreements between the parties.
However, there are some limitations and exceptions to the General Release. For instance, the release does not apply to claims arising under the Washington Franchise Investment Protection Act. Additionally, riders to the franchise agreement for use in specific states like Maryland, Minnesota, and North Dakota include provisions that limit the scope of the general release to the extent prohibited by their respective state laws. These state-specific provisions ensure that franchisees retain certain rights and protections under their local franchise laws, regardless of the general release. Therefore, prospective franchisees should be aware of these conditions and exceptions, especially if they are located in or plan to operate in these states.