factual

Is the 1 800 Packouts territory granted to the franchisee exclusive?

1_800_Packouts Franchise · 2025 FDD

Answer from 2025 FDD Document

d Business. We will not provide any hiring assistance, advice or guidance.**

ITEM 12 TERRITORY

You will be granted a territory ("Your Territory"). Your Territory will not be exclusive. You may face competition from other franchisees, from company-owned businesses, or from other channels of distribution or competitive brands that we control. Your Territory will be described in an exhibit to the Franchise Agreement and will be determined in our sole discretion based upon population density, demographics and other Franchised Business operations in the market. Territories may range from 1 to 1,000,000 people. Your Territory may not exceed a population of 1,000,000 people, in the event the population exceeds 1,250,000 people you will be required to purchase an additional franchise.

You receive certain marketing protection afforded you under the Agreement, and in consideration of your participation in our national/regional programs. Such are collectively referred to as our National/Regional Opportunity Protection program or "NROP." As we enroll insurance companies, third-party administrators, or other similar organizations in this NROP program for the benefit of the System, our objective is to benefit our franchisees; however, we cannot assure that any enrollees in our NROP program will provide you such benefits in your Territory. Your NROP Fee is owed regardless if whether you enroll in all, some, or none of the NROP programs.

Protected Advertising. No other 1-800-Packouts business may advertise in Franchisee's Territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within such Territory. It is acknowledged that Franchisee may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising—none of which shall comprise a breach of this provision.

Protected TPA and Regional/National Referrals. Franchisee will receive TPA and Regional/National referrals for your assigned zip codes in accordance with program requirements. The Franchisor cannot guarantee the Franchisee's participation in these programs, nor can we guarantee any number of jobs from these programs. If you are not compliant with your Franchise Agreement, program requirements (as established by such TPAs, or Regional/National account parties), or fail to perform program work adequately, the Franchisor may direct TPA or Regional/National referrals to another franchisee or itself.

Protected Call Center Referrals. You will receive Call Center leads received by the Franchisor for your assigned zip codes. If you are not compliant with your Franchise Agreement, the Franchisor may direct these leads to another franchisee or to itself.

Protected Office Location. No other 1-800-Packouts Business may establish an office location within Franchisee's Territory. The Franchisee may not advertise or establish an office outside the Territory without Franchisor's prior written consent. Within the Territory, the Franchisee have the right to advertise, market, solicit and service any customer desiring inventorying, packing, moving, cleaning, deodorizing and storage services except as described in this section.

Clarifying Terms (Pre-Existing Exceptions). Notwithstanding the generality of the foregoing, the Franchisor shall take reasonably available measures, including enforcement of rights under other franchise agreements, to assure that no other franchisee of Franchisor conducts advertising, marketing, and related digital campaigns or activities within the Territory under any agreement entered into from and after the date of this Addendum. The Franchisor further agrees that for so long as Franchisee remains in good standing under the Franchise Agreement and is not in default, Franchisor will not open a company-owned location in the Territory. The Franchisor shall not be in violation of this paragraph 4 in the event that rights or licenses in existence prior to the date of this Addendum exist permitting a franchisee of Franchisor to

conduct activities that Franchisor would otherwise have obligations to curtail pursuant to paragraph 4, save that Franchisor agrees not to renew such rights or licenses at the time that they expire by their terms or are otherwise terminated.

Rights Within Your Territory. You have a right to operate a Facility in Your Territory. Your Facility will be in a location to be approved by us, unless it has already been identified and pre-approved in your agreement. You have a non-exclusive right to market to, and provide services to, any customers located in Your Territory. Your territorial protections are described above, in connection with the NROP program. Provided you are in compliance with the Franchise Agreement and any other agreements with us, (i) we or our affiliates will not establish or authorize any person or Entity other than you to establish a Franchised Business or Facility in Your Territory during the term of the Franchise Agreement and (ii) if we or our affiliates receive any leads related to jobs in Your Territory, we will promptly provide you with the relevant information.

Operations Outside of Your Territory.

Source: Item 12 — TERRITORY (FDD pages 40–43)

What This Means (2025 FDD)

According to 1 800 Packouts's 2025 Franchise Disclosure Document, the territory granted to a franchisee is not exclusive. 1 800 Packouts franchisees may face competition from other franchisees, company-owned businesses, or other channels of distribution or competitive brands controlled by 1 800 Packouts. The territory size will be determined at 1 800 Packouts's discretion based on factors like population density and demographics, and can range from 1 to 1,000,000 people. If the territory population exceeds 1,250,000, the franchisee will be required to purchase an additional franchise.

Despite the non-exclusive nature of the territory, 1 800 Packouts offers some marketing protection under its National/Regional Opportunity Protection program (NROP). This protection includes that no other 1 800 Packouts business may advertise in the franchisee's territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising. Franchisees also receive TPA and Regional/National referrals for their assigned zip codes, and Call Center leads received by 1 800 Packouts for their assigned zip codes. Additionally, no other 1 800 Packouts business may establish an office location within the franchisee's territory.

However, 1 800 Packouts retains several rights within the franchisee's territory. These include the right to market to and solicit referrals from referral sources located inside the territory, provided the services are performed outside the territory. 1 800 Packouts also reserves the right to provide services to customers inside the territory in the event of a catastrophic event or if a customer or referral source requests their services. Furthermore, 1 800 Packouts and its affiliates can advertise and promote franchised businesses and related products within the territory, and offer similar or dissimilar products and services through other channels of distribution.

After the franchisee's second year of operations, 1 800 Packouts will review the franchisee's performance annually. The franchised business must achieve a minimum amount of Gross Sales equal to $1 per person in the territory. If the franchisee fails to reach this Minimum Sales Quota, 1 800 Packouts may offer assistance, reduce the size of the territory, and/or suspend the franchisee's exclusive rights within the territory. Failing to meet the quota for three consecutive years constitutes a non-curable default, potentially leading to termination of the Franchise Agreement or adjustments to the territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.