Does 1 800 Packouts guarantee a franchisee's participation in TPA and Regional/National referral programs?

According to 1 800 Packouts' 2025 Franchise Disclosure Document, while franchisees will receive TPA and Regional/National referrals for their assigned zip codes according to program requirements, 1 800 Packouts does not guarantee a franchisee's participation in these programs. Additionally, 1 800 Packouts cannot guarantee any number of jobs from these programs. This means that a franchisee can expect to receive referrals, but the franchisor makes no assurances about the volume or consistency of such referrals.

This lack of guarantee has significant implications for a prospective franchisee. Revenue projections and business plans should not rely heavily on these referrals as a guaranteed source of income. The franchisee will need to proactively market their services and build their own customer base to ensure a stable revenue stream. This is a common practice in franchising, as franchisors often cannot control the volume of referrals due to external factors and the performance of third-party administrators.

Furthermore, if a franchisee fails to comply with the Franchise Agreement, program requirements set by TPAs or Regional/National account parties, or does not perform program work adequately, 1 800 Packouts has the right to direct TPA or Regional/National referrals to another franchisee or even to itself. This underscores the importance of adhering to all contractual obligations and maintaining high standards of service to remain in good standing and continue receiving referrals. Franchisees should consider this a performance-based aspect of the referral program.