What is the relationship between the Rider and the Franchise Agreement for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement and the outlet is opened. |
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IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| Short-term lease cost | 133,893 | 200,074 |
|---|---|---|
| Total | $559,807 | $606,205 |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN MINNESOTA
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the Franchised Business that you will operate under the Franchise Agreement will be located in Minnesota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Minnesota.
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- Releases. The following is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
Any release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law.
- Renewal and Termination. The following is added to the end of Sections 2.D and 15.B of the Franchise Agreement:
However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.
- Consent to Jurisdiction. The following is added to the end of Section 17.A of the Franchise Agreement:
However, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota. Nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Governing Law. The following is added to the end of Section 17.B of the Franchise Agreement:
However, nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Limitations of Claims. The following is added to the end of Section 17.G of the Franchise Agreement:
Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2024 | 2023 | ||
|---|---|---|---|
| Current: | |||
| Federal | $(133,183) | $(262,480) | |
| State | 244 | (78,963) | |
| Total current | (132,939) | (341,443) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NEW YORK
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business that you will operate under the Franchise Agreement was made in the State of New York, and/or (b) you are a resident of New York and will operate the Franchised Business in New York.
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- Releases. The following language is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
- , provided, however, that to the extent required by Article 33 of the General Business Law of the State of New York, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of the proviso that the non-waiver provisions of GBL 687 and 687.5 be satisfied.
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- Transfer by Franchisor. The following language is added to the end of Section 14.A of the Franchise Agreement:
However, no assignment will be made except to an assignee who, in our good faith judgment, is willing and financially able to assume our obligations under this Agreement.
- Termination by Franchisee. The following language is added to the end of Section 15.A of the Franchise Agreement:
You also may terminate the Agreement on any grounds available by law.
- Governing Law/Consent to Jurisdiction. The following language is added to the end of Sections 17.A and 17.B of the Franchise Agreement:
However, to the extent required by Article 33 of the General Business Law of the State of New York, this Section shall not be considered a waiver of any right conferred upon you by the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder.
- Limitation of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:
To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| Federal | 453,482 | (292,567) |
|---|---|---|
| State | 111,856 | (131,688) |
| Total deferred | 565,338 | (424,255) |
| Total benefit (provision) for income taxes | $432,399 | $(765,698) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of North Dakota and the Franchised Business that you will operate under the Franchise Agreement will be located in North Dakota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in North Dakota.
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- Releases. The following is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
Any general release shall not apply to the extent prohibited by law with respect to claims arising under the North Dakota Franchise Investment Law.
- Covenant Not to Compete.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the Rider is an integral part of the Franchise Agreement. Specifically, the Rider is annexed to and forms a part of the Franchise Agreement. The purpose of the Rider is to address specific legal requirements or considerations based on the franchisee's location.
The FDD excerpts include Riders for franchisees in Minnesota, Washington, New York, Maryland, North Dakota, and Rhode Island. These riders are signed concurrently with the Franchise Agreement. The need for a Rider arises due to factors such as the location of the franchised business, the franchisee's residency, or where the franchise offering or sales activities occurred.
Each Rider modifies specific sections of the Franchise Agreement to comply with state laws. For example, the Minnesota Rider addresses releases, renewal, and termination in accordance with Minnesota law. The Washington Rider incorporates the Washington Franchise Investment Protection Act. The New York Rider ensures compliance with New York's General Business Law. The Maryland Rider addresses claims arising under the Maryland Franchise Registration and Disclosure Law. Similarly, the North Dakota Rider addresses enforceability of non-compete covenants, and the Rhode Island Rider allows actions in Rhode Island for claims under the Rhode Island Franchise Investment Act.
Prospective franchisees should carefully review the Rider applicable to their state in conjunction with the Franchise Agreement to understand their rights and obligations fully. It is essential to understand how the Rider modifies the general terms of the Franchise Agreement to comply with local laws and regulations.