What section of the 1 800 Packouts Franchise Agreement does Section 3 of the Rider amend?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Transfer by Franchisor. The following language is added to the end of Section 14.A of the Franchise Agreement:
However, no assignment will be made except to an assignee who, in our good faith judgment, is willing and financially able to assume our obligations under this Agreement.
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 to the Franchise Agreement includes state-specific modifications. For franchisees in New York, Section 3 of the Rider adds language to the end of Section 14.A of the Franchise Agreement, concerning transfer by the franchisor. This addition stipulates that any assignment of the agreement by 1 800 Packouts must be to an assignee who is willing and financially able to assume the franchisor's obligations.
For Maryland franchisees, Section 3 of the Rider modifies Section 17.A of the Franchise Agreement, addressing consent to jurisdiction. The added language specifies that a franchisee may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
For North Dakota franchisees, Section 3 of the Rider modifies Section 16.E of the Franchise Agreement, addressing the covenant not to compete. The added language specifies that covenants not to compete are generally considered unenforceable in North Dakota; however, 1 800 Packouts will seek to enforce them to the extent enforceable.