What section of the 1 800 Packouts Franchise Agreement is modified by the Rider?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 17.G of the Franchise Agreement:
To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| Federal | 453,482 | (292,567) |
|---|---|---|
| State | 111,856 | (131,688) |
| Total deferred | 565,338 | (424,255) |
| Total benefit (provision) for income taxes | $432,399 | $(765,698) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of North Dakota and the Franchised Business that you will operate under the Franchise Agreement will be located in North Dakota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in North Dakota.
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- Releases. The following is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
Any general release shall not apply to the extent prohibited by law with respect to claims arising under the North Dakota Franchise Investment Law.
- Covenant Not to Compete. The following is added to the end of Section 16.E of the Franchise Agreement:
Covenants not to compete such as those mentioned above generally are considered unenforceable in North Dakota. However, we will seek to enforce them to the extent enforceable.
- Consent To Jurisdiction. The following language is added to the end of Section 17.A of the Franchise Agreement:
However, that to the extent required by applicable law, you may bring an action in North Dakota.
- Governing Law. The following language is added to the end of Section 17.B of the Franchise Agreement:
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement.
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- Waiver of Punitive Damages. Section 17.C of the Franchise Agreement is hereby deleted.
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- Waiver of Jury Trial. Section 17.D of the Franchise Agreement is hereby deleted.
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- Limitations of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:
The time limitations set forth in this Section might be modified by the North Dakota Franchise Investment Law.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2024 | 2023 | |
|---|---|---|
| Deferred income tax assets (liabilities): | ||
| Intangible assets | $(5,284,048) | $(5,747,861) |
| Deferred costs | (153,662) | (16,114) |
| Fixed assets | (36,969) | (44,540) |
| Deferred revenue | 249,196 | 140,945 |
| NOL carryforwards | 287,562 | 166,613 |
| Other | (4,146) | (6,448) |
| $(4,942,067) | $(5,507,405) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN RHODE ISLAND
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of Rhode Island and the Franchised Business that you will operate under the Franchise Agreement will be located in Rhode Island; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Rhode Island.
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- Consent to Jurisdiction. The following language is added to the end of Section 17.A of the Franchise Agreement:
However, to the extent required by applicable law, you may bring an action in Rhode Island for claims arising under the Rhode Island Franchise Investment Act.
- Governing Law. The following language is added to the end of Section 17.B of the Franchise Agreement:
Notwithstanding the foregoing, to the extent required by applicable law, Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act. Section 19- 28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| CALIFORNIA Commissioner of the Department of Financial Protection and Innovation Department of Financial Protection and Innovation 320 West Fourth Street, Suite 750 Los Angeles, California 90013-2344 (213) 876-7500 Toll Free: (866) 275-2677 | MARYLAND Office of the Attorney General Securities Division 200 St. Paul Place Baltimore, Maryland 21202-2020 (410) 576-6360 |
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| HAWAII Commissioner of Securities of the State of Hawaii Department of Commerce & Consumer Affairs Business Registration Division Securities Compliance Branch 335 Merchant Street, Room 203 Honolulu, Hawaii 96813 (808) 586-2722 | MICHIGAN Consumer Protection Div., Franchise Section Attn: Kathryn A. Barron 670 G. Mennen Williams Building Lansing, Michigan 48913 (517) 373-7117 |
| ILLINOIS | MINNESOTA |
| Chief, Franchise Division | Securities Unit |
| Attorney General’s Office | Department of Commerce |
| 500 South Second Street | 85 7th Place East, Suite 280 |
| Springfield, Illinois 62706 | St. Paul, Minnesota 55101 |
| (217) 782-4465 | (651) 539-1600 |
| INDIANA Secretary of State Franchise Section 302 West Washington, Room E-111 Indianapolis, Indiana 46204 (317) 232-6681 | NEW YORK Secretary of State 99 Washington Avenue Albany, New York 12231 (212) 416-8236 |
| NORTH DAKOTA North Dakota Securities Department 600 Boulevard Avenue, State Capitol Fifth Floor, Dept. 414 Bismarck, North Dakota 58505-0510 (701) 328-4712 | VIRGINIA State Corporation Commission Securities and Retail Franchising Division Clerk of the State Corporation Commission, Registered Agent 1300 East Main Street, 9th Floor Richmond, Virginia 23219 (804) 371-9051 |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN WASHINGTON
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement effective as of ______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider and all related agreements, collectively referred to singularly as the Franchise Agreement. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the Franchised Business that you will operate under the Franchise Agreement will be located in Washington; and/or (b) you are a resident of Washington; and/or (c) any of the offering or sales activity relating to the Franchise Agreement occurred in Washington.
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- Addition of Paragraphs. In recognition of the requirements by the Washington Franchise Investment Protection Act and the Rules and Regulations promulgated thereunder, the Franchise Agreement shall be modified to add the following:
The State of Washington has a statute, RCW 19.100.180, which might supersede this Agreement in your relationship with us, including the areas of termination and renewal of your franchise. There may also be court decisions which might supersede this Agreement in your relationship with us, including the areas of termination and renewal of your franchise.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW shall prevail.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect our reasonable estimate or actual costs in effecting a transfer.
In lieu of an impound of franchise fees, the Franchisor will not require or accept the payment of any initial franchise fees until the franchisee has (a) received all initial training that it is entitled to under the franchise agreement or offering circular, and (b) is open for business.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the Rider modifies specific sections of the Franchise Agreement depending on the state where the franchise is located. For franchisees in North Dakota, the Rider adds to the end of Sections 2.D(4) and 14.C(6) regarding releases, Section 16.E concerning covenants not to compete, and Section 17.A about consent to jurisdiction.
For Maryland franchisees, the Rider adds to the end of Sections 2.D(4) and 14.C(6) regarding releases, Section 17.A concerning consent to jurisdiction, and Section 17.B pertaining to governing law. In New York, the Rider adds to the end of Sections 2.D(4) and 14.A of the Franchise Agreement, addressing releases and franchisor transfers, respectively.
For franchisees in Minnesota, the Rider adds to the end of Sections 2.D(4) and 14.C(6) regarding releases, and Sections 2.D and 15.B concerning renewal and termination, to ensure compliance with Minnesota law. In Rhode Island, the Rider adds to the end of Sections 17.A and 17.B of the Franchise Agreement, addressing consent to jurisdiction and governing law. Finally, for franchisees in Washington, the Rider adds paragraphs to the Franchise Agreement to acknowledge the requirements of the Washington Franchise Investment Protection Act.