To which sections of the 1 800 Packouts Franchise Agreement are additions being made by this Rider?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
The following language is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
- , provided, however, that to the extent required by Article 33 of the General Business Law of the State of New York, all rights you enjoy 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 the proviso that the non-waiver provisions of GBL 687 and 687.5 be satisfied.
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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 specific sections of the franchise agreement that are being modified by the rider depend on the state in which the franchise is located. \n\nFor franchisees in New York, the rider adds language to the end of Sections 2.D(4) and 14.C(6), addressing releases and ensuring that rights and causes of action under Article 33 of the General Business Law of New York remain in force. Additionally, language is added to Section 14.A regarding the transfer of the agreement by the franchisor, stipulating that any assignee must be willing and financially able to assume the franchisor's obligations. \n\nFor franchisees in North Dakota, the rider adds to Sections 2.D(4) and 14.C(6) regarding releases, clarifying that general releases do not apply to claims arising under the North Dakota Franchise Investment Law. It also adds to Section 16.E concerning covenants not to compete, noting that such covenants are generally considered unenforceable in North Dakota but will be enforced to the extent possible. Additionally, language is added to Section 17.A regarding consent to jurisdiction. \n\nFor franchisees in Minnesota, the rider adds to Sections 2.D(4) and 14.C(6) regarding releases, specifying that releases required for renewal or transfer will not apply to the extent prohibited by the Minnesota Franchises Law. It also adds to Sections 2.D and 15.B regarding renewal and termination, stating that 1 800 Packouts will comply with Minnesota law requiring specific notice periods for termination and non-renewal. \n\nFor franchisees in Maryland, the rider adds to Sections 2.D(4) and 14.C(6) regarding releases, stating that general releases signed as a condition to transfer or renewal will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. It also adds to Section 17.A regarding consent to jurisdiction, allowing franchisees to bring actions in Maryland for claims under the Maryland law, and to Section 17.B regarding governing law, specifying that Maryland law will apply to claims arising under the Maryland Franchise Registration and Disclosure Law. \n\nFor franchisees in Washington, the rider modifies the Franchise Agreement to add paragraphs recognizing the requirements of the Washington Franchise Investment Protection Act, stating that the Act and court decisions might supersede the agreement in areas of termination and renewal, and that the provisions of the Act will prevail in case of conflict of laws. \n\nFor franchisees in Rhode Island, the rider adds to Section 17.A regarding consent to jurisdiction, allowing franchisees to bring actions in Rhode Island for claims arising under the Rhode Island Franchise Investment Act, and to Section 17.B regarding governing law.