What section of the 1 800 Packouts Franchise Agreement discusses the franchisee's obligations on termination/nonrenewal?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| violation of the Franchise Agreement; you fail to | |||
| maintain accurate books and records or make any | |||
| misrepresentations or material omissions in any | |||
| communications with us; you fail on 3 or more | |||
| occasions within any consecutive 12 month period to | |||
| comply with the Franchise Agreement, whether or not | |||
| such failures to comply are corrected after notice is | |||
| given to you; or you fail to achieve the Minimum Sales | |||
| Quota in three consecutive Agreement years. | |||
| i. | Franchisee's 8B obligations on termination/ nonrenewal | 16 | You must: pay us all amounts owed within 10 days after termination or expiration of the Franchise Agreement; refrain from using the Marks; return to us or destroy, as we specify, all forms and materials bearing the Marks or relating to a Franchised Business; notify your telephone service of the termination or expiration of your right to use the telephone number; de-identify the premises; return the Operating and Training Manuals and any other Confidential Information; cease using all Confidential Information; and abide by the post-term non-compete. |
| In the event you intend not to renew your franchise, | |||
| you must provide us with 6 months' notice of | |||
| nonrenewal. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–53)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, Item 17 details the franchisee's obligations upon termination or nonrenewal of the franchise agreement. Specifically, section 16 of the Franchise Agreement, as summarized in the table, outlines these obligations.
The summary indicates that a franchisee must fulfill several requirements within 10 days of termination or expiration. These include paying all outstanding amounts owed to 1 800 Packouts, ceasing all use of the brand's Marks, and either returning or destroying all forms and materials bearing the Marks, as specified by the franchisor. Additionally, the franchisee must notify their telephone service provider about the termination or expiration of their right to use the assigned telephone number and de-identify the business premises to remove any association with the 1 800 Packouts brand.
Furthermore, the franchisee is obligated to return the Operating and Training Manuals, along with any other Confidential Information, and to discontinue the use of all Confidential Information. Finally, the franchisee must adhere to the post-term non-compete clause, which restricts their ability to engage in similar businesses within a specified area for a certain period. The FDD also notes that if a franchisee intends not to renew their franchise agreement, they must provide 1 800 Packouts with 6 months' notice of nonrenewal.