Does 1 800 Packouts have a set contribution amount for its own Franchised Businesses to the Brand Fund?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Brand Fund. You must contribute the Marketing Fee an amount designated by us up to 3% of your Gross Sales to the Brand Fund. We will administer the Brand Fund. The Franchised Business owned by us or our affiliates will contribute to the Brand Fund but does not have a set amount it contributes.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–39)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, franchisees must contribute a Marketing Fee, which is an amount designated by 1 800 Packouts, up to 3% of Gross Sales to the Brand Fund. While franchisees are required to contribute to the Brand Fund, 1 800 Packouts's own franchised businesses or those of its affiliates do not have a set contribution amount. The contribution amount for franchisees is up to 3% of gross sales, but the franchisor-owned businesses do not have a fixed contribution.
1 800 Packouts retains sole discretion over how the Brand Fund is spent, including the types of media used and the location of advertising campaigns. These may include print, radio, television, telephone, smart phone, social media, and Internet. The funds may also be used for general public relations, business development, and to build brand awareness. However, the Brand Fund cannot be used for soliciting new franchise sales.
For prospective franchisees, this means that while they are obligated to contribute up to 3% of their gross sales to the Brand Fund, 1 800 Packouts's own contribution may vary. Franchisees should be aware that the franchisor has the right to terminate the Brand Fund with 30 days' notice, and any unspent monies will be distributed to 1 800 Packouts and its franchisees in proportion to their contributions over the preceding 12-month period. An annual, unaudited statement of monies collected and costs incurred by the Brand Fund will be made available upon written request.