Are there any exceptions to the forum where actions must be brought for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
r of Jury Trial**. Section 17.D of the Franchise Agreement is hereby deleted.
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- Limitations of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:
The time limitations set forth in this Section might be modified by the North Dakota Franchise Investment Law.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2024 | 2023 | |
|---|---|---|
| Deferred income tax assets (liabilities): | ||
| Intangible assets | $(5,284,048) | $(5,747,861) |
| Deferred costs | (153,662) | (16,114) |
| Fixed assets | (36,969) | (44,540) |
| Deferred revenue | 249,196 | 140,945 |
| NOL carryforwards | 287,562 | 166,613 |
| Other | (4,146) | (6,448) |
| $(4,942,067) | $(5,507,405) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN RHODE ISLAND
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) you are a resident of Rhode Island and the Franchised Business that you will operate under the Franchise Agreement will be located in Rhode Island; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Rhode Island.
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- Consent to Jurisdiction. The following language is added to the end of Section 17.A of the Franchise Agreement:
However, to the extent required by applicable law, you may bring an action in Rhode Island for claims arising under the Rhode Island Franchise Investment Act.
- Governing Law. The following language is added to the end of Section 17.B of the Franchise Agreement:
Notwithstanding the foregoing, to the extent required by applicable law, Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act. Section 19- 28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| CALIFORNIA Commissioner of the Department of Financial Protection and Innovation Department of Financial Protection and Innovation 320 West Fourth Street, Suite 750 Los Angeles, California 90013-2344 (213) 876-7500 Toll Free: (866) 275-2677 | MARYLAND Office of the Attorney General Securities Division 200 St. Paul Place Baltimore, Maryland 21202-2020 (410) 576-6360 |
|---|---|
| HAWAII Commissioner of Securities of the State of Hawaii Department of Commerce & Consumer Affairs Business Registration Division Securities Compliance Branch 335 Merchant Street, Room 203 Honolulu, Hawaii 96813 (808) 586-2722 | MICHIGAN Consumer Protection Div., Franchise Section Attn: Kathryn A. Barron 670 G. Mennen Williams Building Lansing, Michigan 48913 (517) 373-7117 |
| ILLINOIS | MINNESOTA |
| Chief, Franchise Division | Securities Unit |
| Attorney General’s Office | Department of Commerce |
| 500 South Second Street | 85 7th Place East, Suite 280 |
| Springfield, Illinois 62706 | St. Paul, Minnesota 55101 |
| (217) 782-4465 | (651) 539-1600 |
| INDIANA Secretary of State Franchise Section 302 West Washington, Room E-111 Indianapolis, Indiana 46204 (317) 232-6681 | NEW YORK Secretary of State 99 Washington Avenue Albany, New York 12231 (212) 416-8236 |
| NORTH DAKOTA North Dakota Securities Department 600 Boulevard Avenue, State Capitol Fifth Floor, Dept. |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, the 1 800 Packouts franchise agreement generally dictates where legal actions must be initiated. However, there are specific exceptions outlined in addenda for franchisees operating in certain states.
For franchisees in Rhode Island, the FDD states that to the extent required by applicable law, a franchisee may bring an action in Rhode Island for claims arising under the Rhode Island Franchise Investment Act. Similarly, for franchisees in Maryland, the FDD states that a franchisee may bring an action in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Furthermore, for franchisees in Illinois, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, the franchise agreement may provide for arbitration to take place outside of Illinois. These exceptions mean that franchisees in these states are not bound to a specific forum for certain legal claims, allowing them to pursue legal action within their home state under specific franchise laws.