What rights does a 1 800 Packouts franchisee have within their territory regarding services?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Within the Territory, the Franchisee have the right to advertise, market, solicit and service any customer desiring inventorying, packing, moving, cleaning, deodorizing and storage services except as described in this section.
- (1) We, our affiliates, our other franchisees, and our 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.
- (2) We, our affiliates, our other franchisees, and our designees have the right to provide products and services using the Marks and the System to customers 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.
You will be granted a territory ("Your Territory"). Your Territory will not be exclusive. You may face competition from other franchisees, from company-owned businesses, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, a franchisee has the right to advertise, market, solicit, and service any customer within their territory who desires inventorying, packing, moving, cleaning, deodorizing, and storage services. However, this right is subject to certain exceptions. The franchisor provides franchisees with protected TPA and Regional/National referrals, as well as Call Center leads, for their assigned zip codes, but these can be redirected if the franchisee isn't compliant with the Franchise Agreement or program requirements. Additionally, no other 1 800 Packouts business may establish an office location within the franchisee's territory, and the franchisee cannot advertise or establish an office outside their territory without prior written consent from 1 800 Packouts.
Despite these rights, 1 800 Packouts, its affiliates, other franchisees, and designees retain certain rights within the franchisee's territory. These include the right to market to and solicit referrals from Referral Sources located inside the franchisee's territory, as long as the services aren't performed there. They also have the right to provide services within the territory if there's a Catastrophic Event or if a customer or Referral Source requests their services. 1 800 Packouts and its affiliates can advertise and promote Franchised Businesses and related services within the territory, including at events like home shows and trade fairs. Furthermore, they can offer similar or dissimilar products and services through other distribution channels and operate businesses offering dissimilar products or services under different trademarks.
It's important to note that 1 800 Packouts' territory is not exclusive, meaning franchisees may face competition from other franchisees, company-owned businesses, or other channels of distribution. Franchisees also receive marketing protection under the National/Regional Opportunity Protection program (NROP), but there's no guarantee that enrollees in the NROP program will provide benefits within their territory. The franchisor has sole discretion over National Accounts, including the terms, conditions, and allocation of business, and may designate any customer as a National Account without compensating the franchisee. Franchisees must service National Account customers according to the negotiated terms, which may be less than their standard pricing. If a franchisee declines to service a National Account or fails to meet the required terms, 1 800 Packouts may remove them from the NROP program and service the account themselves or authorize others to do so, without compensating the franchisee.