Are there any exceptions to the 'Grant and Renewal of Franchise' process for a 1 800 Packouts franchise?
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. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.
- Consent to Jurisdiction. The following is added to the end of Section 17.A of the Franchise Agreement:
However, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota. Nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Governing Law. The following is added to the end of Section 17.B of the Franchise Agreement:
However, nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Limitations of Claims. The following is added to the end of Section 17.G of the Franchise Agreement:
Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2024 | 2023 | ||
|---|---|---|---|
| Current: | |||
| Federal | $(133,183) | $(262,480) | |
| State | 244 | (78,963) | |
| Total current | (132,939) | (341,443) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NEW YORK
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 that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business that you will operate under the Franchise Agreement was made in the State of New York, and/or (b) you are a resident of New York and will operate the Franchised Business in New York.
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- Releases. The following language is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
- , provided, however, that to the extent required by Article 33 of the General Business Law of the State of New York, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force;
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, there are specific state-related exceptions and stipulations to the standard franchise agreement, particularly concerning releases, renewals, and terminations. For franchisees operating in Minnesota, any release required as a condition of renewal will not apply if prohibited by the Minnesota Franchises Law. Additionally, Minnesota law dictates that 1 800 Packouts must provide franchisees with 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal, except in certain specified cases, as per Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5. These stipulations modify sections of the standard franchise agreement related to renewal and termination.
For franchisees in Washington, the Rider acknowledges the Washington Franchise Investment Protection Act, which might supersede the standard agreement, especially in areas of termination and renewal. In case of conflicting laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW, will take precedence. Similarly, for franchisees in New York, any releases required for renewal will not waive rights or causes of action arising from Article 33 of the General Business Law of the State of New York, ensuring compliance with GBL 687 and 687.5.
For franchisees in Maryland, 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. Furthermore, while the franchise agreement typically includes clauses related to jurisdiction and governing law, franchisees in Maryland have the right to bring actions in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and Maryland law will apply to these claims. These riders modify the standard 1 800 Packouts franchise agreement to comply with specific state laws, providing additional protections and stipulations for franchisees in Minnesota, Washington, New York, and Maryland.