Does 1 800 Packouts have the right to advertise Franchised Businesses in my territory?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
located inside Your Territory if (i) there is a Catastrophic Event, or (ii) a customer or Referral Source requests that they provide such services.
- (3) We and our affiliates have the right to advertise or promote Franchised Businesses and/or related products and services using the Marks in Your Territory, including at home shows, trade fairs, exhibitions, and similar events.
- (4) We and our affiliates have the right to offer dissimilar, similar, or identical products and services, or grant others the right to offer dissimilar, similar, or identical products and services, using the Marks or other marks through channels of distribution in Your Territory other than a Franchised Business.
- (5) We and our affiliates have the right to operate, or grant others the right to operate, businesses or outlets in Your Territory offering dissimilar products or services under trademarks or service marks other than the Marks.
We, our affiliates, our franchisees, or our designees need not compensate you if we or they engage in these activities. Neither we nor our affiliates operate, franchise, or have present plans to operate or franchise a business under a different trademark that sells or will sell products or services similar to those you will sell. However, we reserve the right to do so in the future.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the franchisor and its affiliates retain certain rights to advertise and promote Franchised Businesses within a franchisee's territory. Specifically, 1 800 Packouts and its affiliates have the right to advertise or promote Franchised Businesses and related products and services using the Marks in the franchisee's territory, including at home shows, trade fairs, exhibitions, and similar events. This means that while franchisees have the right to advertise within their territory, 1 800 Packouts also reserves the right to conduct its own advertising campaigns.
This could create both opportunities and challenges for franchisees. On one hand, the franchisor's advertising efforts could boost overall brand awareness and generate leads for all franchisees, including those in your territory. On the other hand, it could also create competition for customers within your territory, as the franchisor's advertising may not necessarily direct all leads specifically to your franchise. It's important to note that the FDD does not specify how 1 800 Packouts allocates leads generated from its advertising efforts within a franchisee's territory.
Furthermore, the 1 800 Packouts Franchise Agreement states that other 1-800-Packouts businesses may not advertise in a franchisee's territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within such territory. However, franchisees may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising, which will not be considered a breach of the agreement. This implies that while direct advertising from other franchisees is restricted, some overlap may occur due to the nature of certain advertising channels.
In addition, 1 800 Packouts, its affiliates, other franchisees, and designees have the right to use the Marks to market to and solicit referrals from Referral Sources located inside your territory, provided that the services to such referrals are not to be performed inside your territory. Also, 1 800 Packouts, its affiliates, its other franchisees, and its designees have the right to provide products and services using the Marks and the System to customers located inside your territory if there is a Catastrophic Event, or a customer or Referral Source requests that they provide such services. A prospective franchisee should clarify with 1 800 Packouts how these advertising and referral activities are managed to ensure fair competition and lead distribution within their territory.