What is the 'System Standards' for a 1 800 Packouts franchise?

We and our affiliates have accumulated knowledge and experience in the contents restoration and insurance restoration industry on the basis of which we have developed and will continue to develop a distinctive business format and set of specifications and operating procedures (collectively, the "System") for the operation of contents restoration businesses specializing in packing, cleaning and climate controlled storage of personal property under the service mark "1-800-PACKOUTS".

The distinguishing characteristics of the System include, but are not limited to, our Facility designs, layouts, and trade dress; our specifications for equipment and inventory; our relationships with vendors; our software and computer programs; the accumulated experience reflected in our training program, operating procedures, customer service standards methods, and marketing techniques; and the mandatory and suggested policies, procedures, standards, specifications, rules, and requirements ("System Standards") set out in our operations manuals ("Manuals") and otherwise in writing.

We may change, improve, add to, and further develop the elements of the System from time to time.

• (1) You acknowledge that the development and operation of the Franchised Business in accordance with our System Standards is essential to preserve the reputation and high standards of quality and service of Franchised Businesses and the goodwill associated with the Marks. You must develop and operate the Franchised Business in accordance with each and every System Standard, as periodically modified or supplemented by us. System Standards may govern any and all aspects of the development and operation of the Franchised Business, including, without limitation, the following:
  • (a) design, layout, décor, color schemes, graphics appearance and lighting; periodic maintenance, cleaning and sanitation; periodic remodeling; replacement of obsolete or worn-out leasehold improvements and Operating Assets; periodic painting; and use of interior and exterior signs, emblems, lettering and logos and the illumination thereof;
    • (b) delivery of services;
    • (c) collection and storage of customer's property;
• (d) sale of authorized products;
• (e) appearance of vehicles and Facilities;
• (f) qualifications, training, dress and appearance of Franchised Business employees (subject to applicable law);
  • (g) use of the Marks and protection of Confidential Information;
  • (h) materials and supplies used in the Franchised Business;
  • (i) sales, marketing and promotional materials and programs;
  • (j) use of standard formats and similar items;
  • (k) use of the Management Systems and other computer software;
  • (l) adoption of technological developments or advances;
  • (m) the addition or deletion of new products and/or services;
  • (n) customer invoicing timing and procedures;
  • (o) hours of operation; and
• (p) such other aspects of the operation and maintenance of the Franchised Business that we determine from time to time to be useful to preserve or enhance the efficient operation, image or goodwill of the Franchised Business and other Franchised Businesses.
• (2) You acknowledge that accurate and appropriately timed invoicing of customers is a key System Standard necessary to protect the reputation of Franchised Businesses. You may not invoice, bill, or otherwise charge a customer for returning their contents from your Facility to a customer's location (which we refer to as a "takeback") until after the delivery has been completed.
• (3) You may only store customers' property in permanent, non-mobile, secure, climate controlled storage units designed in accordance with our specifications at your Facility. You may not use storage pods or off-site storage units of any kind.

We periodically may modify System Standards (including modifications that require you to offer additional or different products or services) and any elements of the System and these modifications may obligate you to invest additional capital in the Franchised Business and/or incur higher operating costs. You agree to implement any changes in System Standards or the System within the time period we request, as if they were part of this Agreement as of the Agreement Date.

Source: Item 23 — RECEIPT (FDD pages 67–238)