What is the maximum length of each interval that 1 800 Packouts can manage the Franchised Business?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Our (or our appointee's) management of the Franchised Business will continue for intervals lasting up to 90 days each (and, in any event, for no more than a total of one year), and we will during each interval periodically evaluate whether you are capable of resuming the Franchised Business' operation and periodically discuss the Franchised Business' status with you.
D. EXERCISE OF OTHER REMEDIES
Our exercise of our rights under Section C. (Other Remedies) will not (a) be a defense for you to our enforcement of any other provision of this Agreement or waive or release you from any of your other obligations under this Agreement, (b) constitute an actual or constructive termination of this Agreement, or (c) be our sole or exclusive remedy for your default. You must continue to pay all fees and otherwise comply with all of your obligations under this Agreement (except as set forth in Section -8 (our assumption of management)) following our exercise of any of these rights. If we exercise any of our rights under Section C., we may thereafter terminate this Agreement without providing you any additional corrective or cure period, unless the default giving rise to our right to terminate this Agreement has been cured to our reasonable satisfaction.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts has the right to manage a franchised business for specific intervals under certain circumstances. These management intervals can last for a maximum of 90 days each. However, the total management period by 1 800 Packouts cannot exceed one year.
During the period that 1 800 Packouts manages the business, they may charge the franchisee a management fee. This fee is equal to 10% of the Franchised Business' Gross Sales during the management period, in addition to any direct out-of-pocket costs and expenses incurred.
It is important to note that while managing the business, 1 800 Packouts (or their appointee) is only required to utilize reasonable efforts and will not be held liable for any debts, losses, or obligations the Franchised Business incurs during the management period. The franchisee is also prohibited from interfering with 1 800 Packouts' management of the business and may be restricted from visiting the business to avoid operational interference.