If I own the facility where my 1 800 Packouts franchise is located, can 1 800 Packouts elect to purchase the facility?

According to 1 800 Packouts's 2025 Franchise Disclosure Document, if a franchisee or their affiliate owns the facility where the 1 800 Packouts franchise is located, 1 800 Packouts has the option to purchase the facility under certain conditions. This option is available to 1 800 Packouts upon termination of the Franchise Agreement for any reason other than termination by the franchisee, or upon expiration of the agreement if a successor agreement is not signed.

Specifically, 1 800 Packouts may elect to include a fee simple interest in the facility and its premises as part of the assets they purchase from the franchisee. Alternatively, 1 800 Packouts has the option to lease the facility from the franchisee or their affiliate. The lease would be for an initial term of five years, with an option for 1 800 Packouts to renew for an additional five-year term, with terms that are commercially reasonable.

This clause in the Franchise Agreement ensures that 1 800 Packouts has options regarding the physical location of the franchise after the agreement ends, which could be beneficial for maintaining brand consistency and operational continuity. For a prospective franchisee, this means that owning the facility does not guarantee long-term control over it if the franchise relationship ends, as 1 800 Packouts could either purchase or lease the facility. Franchisees should consider this potential outcome when deciding whether to purchase a facility for their 1 800 Packouts business.