When is the Initial Franchise Fee due for a 1 800 Packouts franchise?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
EM 5 INITIAL FEES**
If you are starting a new Franchised Business, you must pay a lump sum initial franchise fee of $62,500 (the "Initial Franchise Fee") at the time that you sign the Franchise Agreement. The Initial Franchise Fee is non-refundable and must be paid in a lump sum.
We provide our initial training program ("System/Procedure Training") to up to four trainees without charge. If you would like more than four trainees to attend Orientation Training, you must pay us $2,500 per additional trainee, which is non-refundable.
You will pay us a $1,000 Annual Conference Registration Deposit, due within seven (7) days of signing your franchise agreement, which will be applied to the actual attendance fee for your first attendance at the first annual conference available to you after you have completed your training. If any portion of this deposit is not required as part of that annual conference attendance or registration fee, it will be credited to you on your invoice following the annual conference.
You will buy from us our Quick Start Package ("QSP"), and pay us the QSP Fee applicable to your franchise size.
Source: Item 5 — INITIAL FEES (FDD page 16)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the Initial Franchise Fee of $62,500 is due at the time the Franchise Agreement is signed. This fee is a lump sum payment and is non-refundable. This means a prospective franchisee must have the full amount available when committing to the franchise.
In addition to the Initial Franchise Fee, the FDD outlines other fees due around the same time. For example, a $1,000 Annual Conference Registration Deposit is due within seven days of signing the Franchise Agreement. Also, the franchisee will need to purchase a Quick Start Package (QSP), with half of the cost due during onboarding and the remainder due at the time of shipping. For a single-unit franchise, the QSP fee is $53,500, inclusive of freight and shipping costs.
Understanding the timing of these initial fees is crucial for prospective 1 800 Packouts franchisees. They need to ensure they have sufficient capital to cover not only the franchise fee but also the other associated costs during the initial stages of setting up the business. The non-refundable nature of the Initial Franchise Fee highlights the importance of thorough due diligence before signing the Franchise Agreement.