What is the geographic scope of the 'Protected Advertising' for a 1 800 Packouts franchisee?

According to the 2025 FDD, 1 800 Packouts franchisees receive 'Protected Advertising' within their territory. This means that no other 1 800 Packouts business is allowed to advertise in the franchisee's territory through print, media, door-to-door methods, mass electronic communication, or direct web-based advertising. This provision aims to prevent direct competition from other franchisees within the same geographic area through advertising. However, the FDD specifies that the territory granted to a franchisee is not exclusive, meaning the franchisee may still face competition from other franchisees, company-owned businesses, or other channels of distribution or competitive brands controlled by 1 800 Packouts. The territory size can range from 1 to 1,000,000 people. If the population exceeds 1,250,000, the franchisee will be required to purchase an additional franchise.

It's important to note that the 'Protected Advertising' has some limitations. The FDD acknowledges that franchisees may experience indirect or carry-over advertising from other franchisees, especially in media where geographic targeting is difficult, such as radio or indirect web-based advertising. This type of indirect advertising does not constitute a breach of the protected advertising provision. This means that while 1 800 Packouts will prevent direct advertising from other franchisees in your territory, you may still encounter some level of advertising from neighboring territories.

In addition to 'Protected Advertising', 1 800 Packouts franchisees also receive other territorial protections, including 'Protected TPA and Regional/National Referrals' and 'Protected Call Center Referrals' for their assigned zip codes. Furthermore, no other 1 800 Packouts business may establish an office location within the franchisee's territory. These protections, along with the 'Protected Advertising', aim to provide franchisees with a defined geographic area where they can focus their marketing and service efforts without direct competition from other 1 800 Packouts businesses. However, 1 800 Packouts retains certain rights within the territory, such as the right to market to and solicit referrals from referral sources located inside the franchisee's territory, provided that the services to such referrals are not to be performed inside the franchisee's territory.