If 1 800 Packouts doesn't want to purchase my facility, can they lease it?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or one of your affiliates owns the Facility, we may elect to include a fee simple interest in the Facility and its premises as part of the Purchased Assets or, at our option, lease the Facility from you or that affiliate for an initial five-year term with one renewal term of five years (at our option) on commercially reasonable terms. You (and your Owners) agree to cause your affiliate to comply with these requirements. If you lease the Facility from an unaffiliated lessor, you agree (at our option) to assign the lease to us or to enter into a sublease for the remainder of the lease term on the same terms (including renewal options) as the lease.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, under certain conditions, 1 800 Packouts has the option to lease your facility instead of purchasing it. This option is available to 1 800 Packouts if you or one of your affiliates owns the facility. If 1 800 Packouts chooses to lease, the initial term will be five years, with an option for 1 800 Packouts to renew for an additional five years, under commercially reasonable terms.
If you lease the facility from an unaffiliated third party, you must, at 1 800 Packouts's option, assign the lease to them or enter into a sublease for the remainder of the lease term. The sublease would have the same terms and conditions, including renewal options, as your original lease.
This clause ensures that 1 800 Packouts has control over the facility's location and operations, especially upon termination or expiration of the franchise agreement. For a prospective franchisee, this means understanding that 1 800 Packouts has significant say in the facility's future, either through purchase or lease, which could impact your long-term real estate strategy.