Does 1 800 Packouts have the right to charge a systems fee for software or system modifications?

According to the 2025 1 800 Packouts Franchise Disclosure Document, 1 800 Packouts retains the right to charge franchisees a reasonable systems fee. This fee would be applied to software or system modifications and enhancements specifically created for 1 800 Packouts that are then licensed to franchisees. The fee may also cover maintenance and support services related to the Management Systems provided by 1 800 Packouts or its affiliates.

1 800 Packouts may require franchisees to purchase, lease, or license new or modified computer hardware, mobile devices, or software. Franchisees may also need to obtain service and support for the Management Systems during the franchise term. The FDD places no limitations on the frequency and cost of these potential obligations. The cost to purchase the Management Systems will range from $500 to $5,000, depending on the size of your Franchised Business and the equipment that you already own. This estimate includes the cost of licensing the software required to be used in the Management Systems.

Prospective franchisees should be aware that the future costs of the Management Systems, including any additions or modifications, cannot be estimated. The costs associated with obtaining the Management Systems, including software licenses, may not be fully amortizable over the remaining term of the Franchise Agreement. Despite this uncertainty, franchisees are obligated to incur these costs. This means that 1 800 Packouts franchisees need to budget for potential technology upgrades and maintenance throughout their franchise term, and should inquire about the typical frequency and magnitude of these costs from existing franchisees during their due diligence.