If 1 800 Packouts assigns its purchase rights, does the assignee have the same rights and obligations?

According to the 2025 FDD, 1 800 Packouts has the right to assign its rights to purchase a franchisee's assets upon termination or expiration of the franchise agreement. If 1 800 Packouts chooses to assign these rights, the entity to whom the rights are assigned assumes all of 1 800 Packouts' rights and obligations related to purchasing those assets.

This means that the assignee, which could be an affiliate of 1 800 Packouts, steps into the shoes of the franchisor regarding the purchase of the franchisee's assets. The franchisee will then be obligated to work with this new entity, rather than directly with 1 800 Packouts, in the event of a purchase.

For a prospective franchisee, this clause ensures that if 1 800 Packouts decides to transfer its purchase rights, the franchisee's obligations regarding the sale of assets remain consistent. The franchisee is still entitled to receive fair compensation for the assets and is subject to the same conditions as if dealing directly with 1 800 Packouts. However, the franchisee should be aware of who the potential assignees might be and consider the implications of dealing with a different entity.