What sections of the 1 800 Packouts Franchise Agreement are amended by the addition described in this Rider?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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:
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 amended by the addition described in the Rider depend on the state where the franchise is located. For franchisees in North Dakota, the Rider amends Sections 2.D(4), 14.C(6), 16.E, and 17.A of the Franchise Agreement, addressing releases, covenants not to compete, and consent to jurisdiction. In New York, the Rider modifies Sections 2.D(4), 14.C(6), and 14.A, concerning releases and transfer by the franchisor.
For franchisees operating in Minnesota, the Rider affects Sections 2.D(4), 14.C(6), 2.D, and 15.B of the Franchise Agreement, relating to releases, renewal, and termination, ensuring compliance with Minnesota law. In Maryland, the Rider amends Sections 2.D(4), 14.C(6), 17.A, and 17.B, covering releases, consent to jurisdiction, and governing law, specifically addressing claims under Maryland franchise law. For franchisees in Washington, the Rider adds paragraphs to the Franchise Agreement to acknowledge the requirements of the Washington Franchise Investment Protection Act, potentially superseding the agreement in areas of termination and renewal.
For a prospective 1 800 Packouts franchisee, this means that the standard Franchise Agreement is subject to state-specific modifications outlined in the Rider. These modifications address various legal considerations, including releases, non-compete clauses, jurisdiction, and compliance with state franchise laws. Franchisees should carefully review the Rider applicable to their state to understand how it amends the standard agreement and what specific rights and obligations they have under their state's franchise laws.