Does 1 800 Packouts make its criteria for approving suppliers available to franchisees?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make our criteria for approving suppliers available to franchisees.
We may approve or disapprove a supplier or item in our sole discretion.
We may charge the supplier a reasonable testing fee and will decide within a reasonable time after receiving the required information whether you may purchase items from such supplier.
Upon our approval of your proposed item and/or supplier, we will permit you to contract with the alternative supplier.
We may revoke approval of a supplier or a particular item at any time in our sole discretion by notifying you and/or the supplier.
- (3) We and our affiliates have the right to receive payments from suppliers on account of their actual or prospective dealings with you and other franchisees and to use all amounts they receive without restriction for any purposes they deem appropriate.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the criteria for approving suppliers are not made available to franchisees. However, 1 800 Packouts publishes its requirements for suppliers in its manuals to the extent that they establish specifications, require approval of suppliers, or designate specific suppliers.
If a franchisee wants to use a supplier not already approved by 1 800 Packouts, the franchisee must notify 1 800 Packouts and submit sufficient information, such as written specifications, photographs, drawings, or samples, for 1 800 Packouts to determine if the supplier meets their standards. 1 800 Packouts will then communicate their decision within a reasonable time. 1 800 Packouts may charge the supplier a reasonable testing fee.
1 800 Packouts maintains the discretion to approve or disapprove any supplier or item. Even after approval, 1 800 Packouts can revoke a supplier's approval or a specific item at any time by notifying the franchisee and/or the supplier. 1 800 Packouts and its affiliates also have the right to receive payments from suppliers based on their dealings with franchisees and can use these amounts without restriction.