Can 1 800 Packouts modify the specifications for the components of the Management Systems?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Our modification of the specifications for the components of the Management Systems may require you to incur costs to purchase, lease and/or license new or modified computer hardware, mobile devices, and/or software and to obtain service and support for the Management Systems during the term of the Franchise Agreement. There are no limitations on the frequency and cost of these obligations of yours. We cannot estimate the future costs of the Management Systems (or additions or modification to the Management Systems) and the cost to you of obtaining the Management Systems (including software licenses) (or any additions or modification) may not be fully amortizable over the remaining term of the Franchise Agreement. Nonetheless, you must incur these costs in obtaining the computer hardware, mobile devices, and software comprising the Management Systems (or additions or modification). We have the right to charge a reasonable systems fee for software or systems modifications and enhancements specifically made for us that is licensed to you and other maintenance and support services that we or our affiliates provide to you related to the Management Systems.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–39)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, 1 800 Packouts can modify the specifications for the components of the Management Systems. These modifications may require a franchisee to incur costs to purchase, lease, and/or license new or modified computer hardware, mobile devices, and/or software. Franchisees may also need to obtain service and support for the Management Systems during the term of the Franchise Agreement.
There are no limitations on the frequency and cost of these required modifications. 1 800 Packouts cannot estimate the future costs of the Management Systems, including any additions or modifications. The cost to a franchisee of obtaining the Management Systems (including software licenses) or any additions or modifications may not be fully amortizable over the remaining term of the Franchise Agreement. Despite this, franchisees must incur these costs to obtain the necessary computer hardware, mobile devices, and software.
1 800 Packouts has the right to charge a reasonable systems fee for software or systems modifications and enhancements specifically made for them that is licensed to the franchisee. This fee also applies to other maintenance and support services that 1 800 Packouts or its affiliates provide related to the Management Systems. This means a franchisee should be prepared for potential unexpected costs related to technology upgrades and changes mandated by 1 800 Packouts during the franchise term.