Is the 'Grant and Renewal of Franchise' for a 1 800 Packouts franchise dependent on any other factors?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the provisions of this Agreement, we hereby grant to you a non-exclusive license (the "License") to own and operate a Franchised Business in the territory specified in Appendix A ("Your
Territory") and to use the Marks and the System in the operation of the Franchised Business. Termination or expiration of this Agreement will constitute termination or expiration of the License.
You may, at your option, renew the License for an additional 10-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term"), provided that:
- (1) You have given us written notice of an election to renew not less than 60 days months nor more than 6 months prior to the end of the initial term and any renewal term of this Agreement;
- (2) You are not at such time in material breach of any of your obligations under this Agreement or any other agreement with us;
- (3) You have substantially complied on a timely basis with all of the conditions and requirements of this Agreement and any other agreements with us or our affiliates throughout the terms of such agreements; and
- (4) Subject to applicable law, you and your Owners execute a general release, in a form prescribed by us, of any claims against us and our affiliates, and our and their officers, directors, agents and employees.
Each renewal will be effectuated by execution of our then-current form of franchise agreement, and all other agreements, instruments and documents then customarily used by us in granting franchises for Franchised Businesses, the terms of which may differ from this Agreement. In such renewal franchise agreement, you will not receive the right to enter into an additional renewal term. A renewal fee in the amount of $10,000 will be payable upon renewal of the License.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the grant of a franchise is subject to the provisions outlined in the franchise agreement. Specifically, 1 800 Packouts grants a non-exclusive license to operate a franchised business within a defined territory, using their marks and system, contingent upon the terms and conditions of the agreement. The termination or expiration of the agreement directly results in the termination or expiration of this license. This means a franchisee's right to operate is entirely dependent on maintaining an active and compliant franchise agreement with 1 800 Packouts. Prospective franchisees should carefully review the franchise agreement to understand all conditions that could affect their license.
The renewal of a 1 800 Packouts franchise license for an additional 10-year term is also subject to certain conditions. To renew, a franchisee must provide written notice of their intent to renew within a specific timeframe: not less than 6 months nor more than 6 months prior to the end of the current term. They must not be in material breach of any obligations under the franchise agreement or any other agreement with 1 800 Packouts. Furthermore, the franchisee must have substantially complied with all conditions and requirements of all agreements throughout their terms.
Additionally, the franchisee and their owners must execute a general release of any claims against 1 800 Packouts and its affiliates, subject to applicable law. A renewal fee of $10,000 is payable upon renewal of the license. The renewal will be formalized through the execution of 1 800 Packouts' then-current form of franchise agreement, which may have terms that differ from the original agreement, and it will not include the right to any further renewal terms. Franchisees in Minnesota, Maryland, Washington and New York have additional considerations outlined in the riders to the franchise agreement.