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What pre-opening obligations does 1 800 Packouts have before I open my franchise?

1_800_Packouts Franchise · 2025 FDD

Answer from 2025 FDD Document

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Our Pre-Opening Obligations

Before you open the Franchised Business, we or our designee will:

  • (1) Review and approve or disapprove the terms of the lease or purchase contract for the premises of the Franchised Business. Your proposed location will be approved based upon factors including adequate parking for your vehicle, including any truck or trailer you use and adequate space for the storage of contents which your operations require you to store for customers. It must also be of adequate size to support your operations and must have high-speed internet access for you and any staff member(s) you retain. Outside of these factors, and the location within your Franchise Territory, we do not consider other factors in approving or disapproving your site. We generally do not own the premises or lease the premises to you. The lease for the Facility must allow for the installation of all equipment and other items necessary to operate the Franchised Business. In addition, the lease shall provide, if required by us, that it be assignable to us or our designee at our option, upon termination or expiration of this Agreement, and shall also contain such terms and provisions as are reasonably approved by us. Currently, we do not specify other required lease terms. There is no time limit for the completion of our review of your lease or purchase contract, but we anticipate completing our review within 10 days of your submission. If we do not approve the terms of the lease or purchase contract and you are unable to locate another site with satisfactory lease or purchase terms in enough time to open the Franchised Business within 180 days after the effective date of the Franchise Agreement, we may terminate the Franchise Agreement, in which case you will forfeit your Initial Franchise Fee. (Franchise Agreement – Section 3.A)
  • (2) Review and approve or disapprove plans and specifications and final construction plans complying with our requirements for design, decoration, furnishings, furniture, layout, equipment, fixtures and signs for a Facility. We do not provide assistance in providing, delivery, or installation of equipment, signs, fixtures, opening inventory, or supplies, but we do provide written specifications for such items. (Franchise Agreement – Section 3.B)
  • (3) Specify the Management Systems for the Franchised Business. (Franchise Agreement Section 3.D)
  • (4) Provide System/Procedure Training, including instruction about how you will make your decisions for employees or contractors (although we will not assist you in the hiring or training of your employees). (Franchise Agreement – Section 4.A)
  • (5) Provide you with advice, guidance and support in connection with the opening and initial operation of the Franchised Business. If you request on-site assistance and we are able to schedule such assistance at a mutually agreeable time, you will be required to pay our reasonable fees for such on-site assistance and will be responsible for the reasonable travel, lodging and per diem expenses incurred by our personnel in providing such on-site assistance. (Franchise Agreement – Section 4.C)
  • (6) Provide you with access to our Manuals. The table of contents of our Manuals is attached to this disclosure document as Exhibit D. The Manuals currently contain approximately 197 pages. The

Manuals may be modified to reflect changes in the specifications, standards, operating procedures and other obligations in operating Franchised Businesses in our sole discretion. You will be required to adopt any modifications into your Franchised Business, including any adjustments to the minimum and/or maximum prices at which you will sell products or services. (Franchise Agreement – Section 4.G)

(7) Approve the opening of your Franchised Business, provided that you have met all of our requirements for opening. We estimate that the typical length of time between signing a Franchise Agreement and opening your Franchised Business is approximately 120 days. Factors affecting this length of time include, among others: ability to select a site and negotiate a satisfactory lease; hiring of the requisite employees;

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, their pre-opening obligations are limited. 1 800 Packouts will review and either approve or disapprove the terms of the lease or purchase contract for the premises of the franchised business, considering factors such as adequate parking for the franchisee's vehicle and storage space, sufficient size to support operations, and high-speed internet access. The FDD states that the franchisor anticipates completing the review within 10 days of submission. However, if 1 800 Packouts does not approve the lease or purchase contract terms, and the franchisee cannot find another suitable site within 180 days of the Franchise Agreement's effective date, 1 800 Packouts may terminate the agreement, resulting in the franchisee forfeiting the initial franchise fee.

1 800 Packouts will also review and approve or disapprove the plans and specifications, including final construction plans, to ensure they comply with 1 800 Packouts's requirements for design, decoration, furnishings, furniture, layout, equipment, fixtures, and signs for the facility. Additionally, 1 800 Packouts will approve the opening of the franchised business, provided that all opening requirements have been met.

1 800 Packouts estimates that the typical time between signing the Franchise Agreement and opening the business is approximately 120 days. Factors influencing this timeline include securing a suitable site and negotiating a lease, hiring employees, completing System/Procedure Training, adhering to local ordinances, delivering operating assets, obtaining necessary licenses and permits, and procuring required insurance. 1 800 Packouts also specifies the Management Systems for the Franchised Business and provides System/Procedure Training, including instruction about how franchisees will make decisions for employees or contractors, though they do not assist in hiring or training employees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.