Do 1 800 Packouts owned Franchised Businesses contribute to the Brand Fund?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
You must contribute the Marketing Fee an amount designated by us up to 3% of your Gross Sales to the Brand Fund. We will administer the Brand Fund. The Franchised Business owned by us or our affiliates will contribute to the Brand Fund but does not have a set amount it contributes.
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' 2025 Franchise Disclosure Document, franchised businesses owned by 1 800 Packouts or its affiliates do contribute to the Brand Fund. However, unlike independently owned franchises, the company-owned businesses do not have a set amount that they are required to contribute.
Franchisees are obligated to contribute up to 3% of their gross sales to the Brand Fund as a Marketing Fee. 1 800 Packouts has the sole discretion to decide how these funds are spent, including the types of media used and the location of advertising campaigns. The funds may be used for various advertising and marketing efforts, such as print, radio, television, social media, and internet campaigns, as well as for public relations and business development to build brand awareness.
The Brand Fund is kept in a separate account, and 1 800 Packouts may spend more or less than the total contributions from franchised businesses in any given year. Unused funds can be carried over to the next fiscal year, and the fund may borrow or invest to cover deficits or surpluses. An annual, unaudited statement of the Brand Fund's collections and costs is available to franchisees upon written request. The Brand Fund can be terminated with 30 days' notice, and any unspent monies will be distributed to 1 800 Packouts and its franchisees based on their contributions over the preceding 12-month period.