What is the renewal fee for a 1 800 Packouts franchise?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
omer to you.
2. TERM
A. INITIAL TERM
The initial term of the License (the "Initial Term") shall begin on the Agreement Date and expire on the 10th anniversary of the Agreement Date.
B. RENEWAL OF FRANCHISE
You may, at your option, renew the License for an additional 10-year term (the "Renewal Term," and collectively, with the Initial Term, the "Term"), provided that:
- (1) You have given us written notice of an election to renew not less than 60 days months nor more than 6 months prior to the end of the initial term and any renewal term of this Agreement;
- (2) You are not at such time in material breach of any of your obligations under this Agreement or any other agreement with us;
- (3) You have substantially complied on a timely basis with all of the conditions and requirements of this Agreement and any other agreements with us or our affiliates throughout the terms of such agreements; and
- (4) Subject to applicable law, you and your Owners execute a general release, in a form prescribed by us, of any claims against us and our affiliates, and our and their officers, directors, agents and employees.
Each renewal will be effectuated by execution of our then-current form of franchise agreement, and all other agreements, instruments and documents then customarily used by us in gra
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, a franchisee can renew their license for an additional 10-year term if they meet certain conditions. These conditions include providing written notice of intent to renew between 6 and 60 months before the end of the current term, not being in material breach of the agreement, and having substantially complied with all agreement requirements.
As part of the renewal process, the franchisee must execute the then-current form of the franchise agreement, which may have terms that differ from the original agreement. They must also sign a general release of claims against 1 800 Packouts and its affiliates.
Upon renewal of the license, the franchisee is required to pay a renewal fee of $10,000. It is important to note that the renewal franchise agreement does not include the right to enter into any further renewal terms beyond the additional 10-year term.