Which sections of the 1 800 Packouts Franchise Agreement are modified regarding releases by the franchisee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement and the outlet is opened. |
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IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| Short-term lease cost | 133,893 | 200,074 |
|---|---|---|
| Total | $559,807 | $606,205 |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN MINNESOTA
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) the Franchised Business that you will operate under the Franchise Agreement will be located in Minnesota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Minnesota.
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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 release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law.
- Renewal and Termination. The following is added to the end of Sections 2.D and 15.B of the Franchise Agreement:
However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, several riders modify the Franchise Agreement concerning releases by the franchisee, depending on the state in which the franchise operates. For franchisees operating in Minnesota, a rider adds language to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement, stipulating that any release required for renewal or transfer will not apply if prohibited by Minnesota Franchises Law.
Similarly, for franchisees in North Dakota, a rider modifies Sections 2.D(4) and 14.C(6) to state that any general release will not apply if prohibited by law concerning claims under the North Dakota Franchise Investment Law. A rider for New York franchisees adds language to the end of Sections 2.D(4) and 14.C(6), ensuring that all rights and causes of action arising from Article 33 of the General Business Law of New York remain in force, satisfying the non-waiver provisions of GBL 687 and 687.5.
For franchisees operating in Maryland, a rider adds language to the end of Sections 2.D(4) and 14.C(6), specifying that any general release signed as a condition to transfer or renewal will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. Finally, a rider for franchisees in Washington states that the Franchise Agreement is modified in recognition of the requirements by the Washington Franchise Investment Protection Act, and in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, shall prevail.