Is 1 800 Packouts obligated to guarantee a franchisee's participation in TPA and Regional/National referral programs?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will receive TPA and Regional/National referrals for your assigned zip codes in accordance with program requirements.
The Franchisor cannot guarantee the Franchisee's participation in these programs, nor can we guarantee any number of jobs from these programs.
If you are not compliant with your Franchise Agreement, program requirements (as established by such TPAs, or Regional/National account parties), or fail to perform program work adequately, the Franchisor may direct TPA or Regional/National referrals to another franchisee or itself.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, while franchisees will receive TPA and Regional/National referrals for their assigned zip codes in accordance with program requirements, 1 800 Packouts does not guarantee a franchisee's participation in these programs. Furthermore, 1 800 Packouts cannot guarantee any number of jobs from these programs.
This means that a franchisee cannot rely on a guaranteed stream of business from these referral programs. The success of a franchisee's participation and the number of jobs received will depend on various factors, including compliance with the Franchise Agreement and program requirements set by TPAs or Regional/National account parties, as well as the franchisee's performance.
If a franchisee fails to meet these requirements or perform the work adequately, 1 800 Packouts reserves the right to direct TPA or Regional/National referrals to another franchisee or even to itself. This underscores the importance of adhering to the franchise agreement and program requirements to maximize the potential benefits from these referral programs and avoid losing access to them.