Is ProNexis, an affiliate of 1 800 Packouts, an approved supplier to franchisees?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
customer demand, if we have not prescribed specific standards).
Relationship With Suppliers. Our affiliate, ProNexis, provides call center, call tracking, and online marketing services and support and is an approved supplier of such services and of telephone numbers to our franchisees. Except as disclosed, neither we nor our affiliates currently are approved suppliers or the only approved suppliers of any products or services to franchisees, though we reserve the right to require you to purchase items from us or our affiliates in the future. None of our officers owns any interest in any supplier with whom you are currently required or recommended to do business.
You may be required to obtain certain services, including call center, call tracking, telephone number, and a number of software services set forth in the Operations Manual or in similar shared documents, drives, folders, intranet resources, etc., some from our Affiliate(s) and others from third parties, and for some of whom we will collect the funds. When such a service is set forth in the Operations Manual as a mandatory service, you must obtain it from an approved or designated vendor outlined in such manual. During fiscal year 2024, we received $77,430.36 from our franchisees' required purchases, representing 1.78% of our total revenue during that period. Our affiliate, ProNexis, received $65,357.06 in revenues d
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–29)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, ProNexis, an affiliate of 1 800 Packouts, is an approved supplier to franchisees. Specifically, ProNexis provides call center, call tracking, and online marketing services and support, as well as telephone numbers. Franchisees are required to use these services in their 1 800 Packouts business. In 2024, ProNexis received $65,357.06 in revenues from 1 800 Packouts franchisees for these required purchases.
1 800 Packouts retains the right to require franchisees to purchase or lease items from them, their affiliates, or expressly approved suppliers. This includes furniture, fixtures, signs, equipment, products, supplies, software, and other services. The brand also maintains the right to establish specifications for these items, designate specific brands or models, and even mandate purchases from a single source, which could be 1 800 Packouts or its affiliates.
If a franchisee wishes to use a supplier not already approved by 1 800 Packouts, they must seek approval by providing sufficient information for the franchisor to determine if the supplier meets their standards. 1 800 Packouts will evaluate the quality and appearance of the proposed products, as well as the supplier's reputation, quality controls, and distribution capabilities. The brand may also charge a testing fee to the supplier. Approval or disapproval is at 1 800 Packouts's sole discretion, and they can revoke approval at any time.