Does the purchase price for my 1 800 Packouts franchise include goodwill?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
However, the purchase price will not include any value for any rights granted by this Agreement, goodwill attributable to the Marks, our brand image, any Confidential Information or our other intellectual property rights, or participation in the network of Franchised Businesses.
For purposes of determining the fair market value of all equipment used in operating the Franchised Business, the equipment's useful life shall be determined to be no more than three years.
If we and you cannot agree on fair market value for the Purchased Assets, we will select an independent appraiser after consultation with you, and his or her determination of fair market value will be the final and binding purchase price.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, the purchase price for a 1 800 Packouts franchise does not include goodwill. Specifically, if 1 800 Packouts elects to exercise its purchase option, the price will be the fair market value for use in operating a Competitive Business, but not a Franchised Business.
The FDD states that the purchase price will exclude any value for rights granted by the Franchise Agreement, goodwill attributable to the Marks, the brand image, any Confidential Information, intellectual property rights, or participation in the network of Franchised Businesses. This means that when determining the fair market value of the assets, these intangible benefits associated with the 1 800 Packouts brand are not factored into the price.
For a prospective franchisee, this is important because it clarifies that the resale value of the franchise, should 1 800 Packouts choose to buy it back, will be based primarily on tangible assets and not on the brand's reputation or market position. The fair market value of equipment will be based on a useful life of no more than three years. If the franchisee and 1 800 Packouts cannot agree on the fair market value, an independent appraiser will determine the final and binding purchase price.