What is the geographic scope of the 'Protected Office Location' for a 1 800 Packouts franchisee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Protected Office Location. No other 1-800-Packouts Business may establish an office location within Franchisee's Territory. The Franchisee may not advertise or establish an office outside the Territory without Franchisor's prior written consent. Within the Territory, the Franchisee have the right to advertise, market, solicit and service any customer desiring inventorying, packing, moving, cleaning, deodorizing and storage services except as described in this section.
Clarifying Terms (Pre-Existing Exceptions). Notwithstanding the generality of the foregoing, the Franchisor shall take reasonably available measures, including enforcement of rights under other franchise agreements, to assure that no other franchisee of Franchisor conducts advertising, marketing, and related digital campaigns or activities within the Territory under any agreement entered into from and after the date of this Addendum. The Franchisor further agrees that for so long as Franchisee remains in good standing under the Franchise Agreement and is not in default, Franchisor will not open a company-owned location in the Territory. The Franchisor shall not be in violation of this paragraph 4 in the event that rights or licenses in existence prior to the date of this Addendum exist permitting a franchisee of Franchisor to
conduct activities that Franchisor would otherwise have obligations to curtail pursuant to paragraph 4, save that Franchisor agrees not to renew such rights or licenses at the time that they expire by their terms or are otherwise terminated.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts franchisees benefit from a 'Protected Office Location.' This means that no other 1 800 Packouts business is allowed to establish an office within the franchisee's designated territory. However, the franchisee is restricted from advertising or establishing an office outside of their territory without obtaining prior written consent from 1 800 Packouts.
Within their assigned territory, the 1 800 Packouts franchisee has the right to advertise, market, solicit, and service any customer who needs inventorying, packing, moving, cleaning, deodorizing, and storage services, subject to certain exceptions. These exceptions involve pre-existing agreements that may allow other franchisees to conduct advertising and marketing activities within the territory. 1 800 Packouts agrees not to renew such rights or licenses when they expire, provided the franchisee is in good standing and not in default of the Franchise Agreement.
This territorial protection offers a significant advantage, as it prevents direct competition from other 1 800 Packouts franchisees within the defined area. However, it's important to note that the territory itself is not exclusive, and franchisees may still face competition from company-owned businesses or other competitive brands. Prospective franchisees should carefully review the specific boundaries of their territory and any pre-existing exceptions to fully understand the scope of their protected office location.