What laws are protected by the Rider to the 1 800 Packouts Franchise Agreement?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ong as the jurisdictional requirements of that Illinois law are met).
No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2025 | $274,481 | |
|---|---|---|
| 2026 | 219,179 |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN MARYLAND
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
-
- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of the State of Maryland, and/or (b) the Franchised Business that you will operate under the Franchise Agreement will be located in Maryland.
-
- Releases. The following language is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
Any general release signed as a condition to transfer or renewal will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- Consent to Jurisdiction. The following language is added to the end of Section 17.A of the Franchise Agreement:
However, you may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- Governing Law. The following language is added to the end of Section 17.B of the Franchise Agreement:
However, Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
- Limitation of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:
Nothing in this Agreement shall act to reduce the three (3) year statute of limitations afforded to you for bringing a claim under the Maryland Franchise Registration and Disclosure Law.
- Acknowledgements. The following language is appended to the Franchise Agreement:
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
In connection with such appended language, the Franchise Agreement Acknowledgement sections contained at Sections 20.1 and 20.2 are hereby deleted.
| 7. Fee Deferral. Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement and the outlet is opened. |
|---|
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| Short-term lease cost | 133,893 | 200,074 |
|---|---|---|
| Total | $559,807 | $606,205 |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN MINNESOTA
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
-
- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the Franchised Business that you will operate under the Franchise Agreement will be located in Minnesota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Minnesota.
-
- Releases. The following is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law.
- Renewal and Termination. The following is added to the end of Sections 2.D and 15.B of the Franchise Agreement:
However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.
- Consent to Jurisdiction. The following is added to the end of Section 17.A of the Franchise Agreement:
However, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota. Nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Governing Law. The following is added to the end of Section 17.B of the Franchise Agreement:
However, nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Limitations of Claims. The following is added to the end of Section 17.G of the Franchise Agreement:
Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2024 | 2023 | ||
|---|---|---|---|
| Current: | |||
| Federal | $(133,183) | $(262,480) | |
| State | 244 | (78,963) | |
| Total current | (132,939) | (341,443) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NEW YORK
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
-
- Background. We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business that you will operate under the Franchise Agreement was made in the State of New York, and/or (b) you are a resident of New York and will operate the Franchised Business in New York.
-
- Releases.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the Rider to the Franchise Agreement includes specific protections for franchisees related to state franchise laws in Maryland, Washington, North Dakota, New York, Minnesota, and Rhode Island.
In Maryland, the Rider ensures that any general release signed as a condition to transfer or renewal of the franchise will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. Franchisees also have the right to bring an action in Maryland for claims arising under this law, and Maryland law will govern such claims.
For franchisees in Washington, the Rider acknowledges the Washington Franchise Investment Protection Act, noting that its provisions might supersede the Franchise Agreement, particularly in areas of termination and renewal. In case of conflict, the Washington Franchise Investment Protection Act prevails.
In North Dakota, the Rider specifies that any general release will not apply to the extent prohibited by law with respect to claims arising under the North Dakota Franchise Investment Law. The rider also notes that covenants not to compete are generally considered unenforceable in North Dakota, although 1 800 Packouts will seek to enforce them to the extent possible.
For New York, the rider ensures that all rights and causes of action arising from Article 33 of the General Business Law of the State of New York remain in force, satisfying the non-waiver provisions of GBL 687 and 687.5.
In Minnesota, any release required as a condition of renewal or transfer will not apply to the extent prohibited by the Minnesota Franchises Law. 1 800 Packouts also commits to complying with Minn. Stat. Sec. 80C.14, Subds. 3, 4, and 5, which mandate specific notice periods for termination (90 days with 60 days to cure) and non-renewal (180 days) of the agreement, except in certain cases.
Finally, in Rhode Island, the Rider allows franchisees to bring actions in Rhode Island for claims arising under the Rhode Island Franchise Investment Act, to the extent required by applicable law.