What is the length of the initial term for a 1 800 Packouts license?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
viously been serving. If you are subsequently willing and able to provide service within Your Territory, we have no obligation to readmit you to the program or to transfer any National Account customer to you.
2. TERM
A. INITIAL TERM
The initial term of the License (the "Initial Term") shall begin on the Agreement Date and expire on the 10th anniversary of the Agreement Date.
B. RENEWAL OF FRANCHISE
You may, at your option, renew the License for an additional 10-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term"), provided that:
- (1) You have given us written notice of an election to renew not less than 60 days months nor more than 6 months prior to the end of the initial term and any renewal term of this Agreement;
- (2) You are not at such time in material breach of any of your obligations under this Agreement or any other agreement with us;
- (3) You have substantially complied on a timely basis with all of the conditions and requirements of this Agreement and any other agreements with us or our affiliates throughout the terms of such agreements; and
- (4) Subject to applicable law, you and your Owners execute a general release, in a form prescribed by us, of any claims against us and our affiliates, and our and their officers, directors, agents and employees.
Each renewal will be effectuated by execution of our then-current form of franchise agreement, and all other agreements, instruments and documents then customarily used by us in gra
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the initial term of the license begins on the agreement date and extends until the 10th anniversary of that date. This means a franchisee will operate under the initial franchise agreement for a decade.
1 800 Packouts also offers the option to renew the license for an additional 10-year term, effectively doubling the potential length of the franchise agreement. To qualify for renewal, the franchisee must provide written notice of their intent to renew at least 60 months (5 years) but no more than 6 months before the initial term expires.
Additionally, the franchisee must be in full compliance with the franchise agreement, not in material breach of any obligations, and execute a general release of claims against 1 800 Packouts. Renewing the license also requires the franchisee to execute the then-current form of the franchise agreement and pay a renewal fee of $10,000.