Can 1 800 Packouts require franchisees to purchase or contract the Management Systems through them or their designee?
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, franchisees are required to use the management system, computer hardware, mobile devices, applications, and software that 1 800 Packouts specifies for the development and operation of the franchised business. These are collectively referred to as "Management Systems." 1 800 Packouts may modify these specifications and components from time to time.
As part of the Management Systems, 1 800 Packouts may require franchisees to obtain specified computer hardware, mobile devices, and/or software, including a license to use proprietary software developed by them or others. Importantly, 1 800 Packouts retains the right to mandate that all or parts of the Management Systems be purchased or contracted through them or their designee.
Modifications to the specifications for the components of the Management Systems may require franchisees 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 the Franchise Agreement. The FDD states that 1 800 Packouts cannot estimate the future costs of the Management Systems or any additions or modifications. The cost to the franchisee of obtaining the Management Systems (including software licenses), or any changes to it, may not be fully amortizable over the remaining term of the agreement; however, the franchisee still agrees to incur such costs.