What is the geographic scope of the 'Protected Office Location' provision for 1 800 Packouts franchisees?
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 1 800 Packouts Franchise Disclosure Document, the 'Protected Office Location' provision means that no other 1 800 Packouts business can establish an office location within a franchisee's territory. However, the franchisee themselves cannot advertise or establish an office outside of their assigned territory without prior written consent from 1 800 Packouts. Within their territory, franchisees have the right to advertise, market, solicit, and service any customer desiring inventorying, packing, moving, cleaning, deodorizing, and storage services, subject to certain exceptions.
This protection is subject to pre-existing exceptions. 1 800 Packouts will take reasonable measures to ensure that other franchisees do not conduct advertising, marketing, or related digital campaigns within a franchisee's territory for agreements entered into after the addendum date. Furthermore, as long as the franchisee is in good standing and not in default, 1 800 Packouts will not open a company-owned location in the franchisee's territory. However, 1 800 Packouts is not in violation if pre-existing rights or licenses allow another franchisee to conduct activities that 1 800 Packouts would otherwise be obligated to curtail, but 1 800 Packouts agrees not to renew such rights or licenses upon their expiration or termination.
This means that while 1 800 Packouts offers some territorial protection regarding office locations, it is not absolute. Pre-existing agreements and the possibility of competition from other franchisees or company-owned businesses could impact a franchisee's market. A prospective franchisee should carefully review the specific territory defined in their Franchise Agreement and understand any existing exceptions or potential competitive factors. It is also important to maintain compliance with the Franchise Agreement to ensure the franchisor does not direct leads or referrals to other franchisees or itself.