For 1 800 Packouts, how many days does a franchisee have to cure a payment default?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| d. | Termination by 3B franchisee | 15.A | If we commit a material breach and fail to cure such breach within 60 days after written notice of the breach is delivered to us; or if such breach cannot be reasonably cured within 60 days after our receipt of such notice, undertake within 60 days after receipt of such notice, and continue until completion, reasonable efforts to cure such breach, you may terminate the Franchise Agreement effective 10 days after delivery of written notice. |
| e. | Termination by 4B franchisor without cause | Not Applicable | Not Applicable. |
| f. | Termination by 5B franchisor with cause | 15.B | Subject to applicable state law, or federal bankruptcy law, we may terminate the Franchise Agreement only upon written notice to you. |
| g. | "Cause" defined ⎯ 6B curable defaults | 15.B | You have 10 days to cure a payment default. You have 5 days to cure a default if such failure relates to the use of any Mark, the quality of the services offered by the Franchised Business or the promotion or sale of services outside Your Territory without our prior written approval. You have 30 days after written notice to cure a default other than those specified in 17.h. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–53)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, a franchisee has 10 days to cure a payment default. This means that if a franchisee fails to make a required payment to 1 800 Packouts, they will receive a notice of default and have 10 days to correct the issue by making the outstanding payment.
It is important to note that this 10-day cure period only applies to payment defaults. Other types of defaults, such as those related to the use of any Mark, the quality of services, or unauthorized sales activities outside the designated territory, have a shorter cure period of only 5 days. Defaults not specifically mentioned elsewhere have a 30-day cure period.
Failure to cure a payment default within the specified 10-day period can result in 1 800 Packouts terminating the Franchise Agreement. This could lead to the franchisee losing their business and the rights to operate under the 1 800 Packouts brand. Franchisees should ensure they have sufficient financial resources and systems in place to manage payments and avoid defaults.