Does 1 800 Packouts provide an estimate of the future costs of the Management Systems for franchisees?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to use in the development and operation of the Franchised Business the management system, computer hardware, mobile devices, applications, and software ("Management Systems") that we specify from time to time.
You acknowledge that we may modify such specifications and the components of the Management Systems from time to time.
As part of the Management Systems, we may require you to obtain specified computer hardware, mobile devices, and/or applications or software, including, without limitation, a license to use proprietary software developed by us or others.
We may also require that all or parts of the Management Systems be purchased or contracted through us or our designee.
Our modification of such 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 this Agreement.
You acknowledge that we cannot estimate the future costs of the Management Systems (or additions or modifications thereto) and that the cost to you of obtaining the Management Systems (including software licenses) (or additions or modifications thereto) may not be fully amortizable over the remaining term of this Agreement.
Nonetheless, you agree to incur such costs in connection with obtaining the computer hardware and software comprising the Management Systems (or additions or modifications thereto).
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, they do not provide an estimate of future Management Systems costs. 1 800 Packouts requires franchisees to use specific management systems, including computer hardware, mobile devices, applications, and software, which may be modified over time. These systems may need to be purchased or contracted through 1 800 Packouts or their designee.
Because 1 800 Packouts may modify the specifications and components of the Management Systems, franchisees may need to purchase, lease, or license new or modified computer hardware, mobile devices, or software and obtain related service and support during the term of the Franchise Agreement. The agreement states that 1 800 Packouts cannot estimate these future costs.
This means that a franchisee must be prepared to incur additional, potentially unpredictable costs related to technology and software throughout the term of their agreement. The FDD also states that these costs may not be fully amortizable over the remaining term of the agreement, meaning the franchisee may not recoup the investment before the agreement ends. Prospective franchisees should factor in potential future costs for Management Systems when evaluating the financial feasibility of investing in a 1 800 Packouts franchise.