Is there a specific exhibit that outlines the 1 800 Packouts Guaranty and Assumption of Obligations?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ty State Of Georgia, filed July 30, 2019).*
Our franchisee, 1-800-Packouts of Ohio, LLC, filed a lawsuit against us seeking a declaratory judgment that we had breached our duties under the Akron Area Franchise Agreement and that the franchisee could review the annual unaudited statements of the Brand Fund. On July 30, 2019, we filed a lawsuit against the franchisee and Jack Schwartz alleging that they had breached the Akron Area Franchise Agreement, Cleveland Area Franchise Agreement, Akron Area Guaranty and Assumption Agreement, and Cleveland Area Guaranty and Assumption Agreement by, among other things, failing to pay all amounts due and failing to provide all necessary reports. In May 2020, we settled all claims and both lawsuits were dismissed with prejudice.
ITEM 4 BANKRUPTCY
No bankruptcy information is required to be disclosed in this Item.
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to the 2025 FDD, Exhibit A includes the current form of the 1 800 Packouts Franchise Agreement. Item 3 in the FDD mentions a legal case, 1-800-Packouts Holdco, LLC v. 1-800-Packouts of Ohio, LLC, and Jack Schwartz, which involved the "Akron Area Guaranty and Assumption Agreement" and the "Cleveland Area Guaranty and Assumption Agreement." However, the FDD does not explicitly state that a standard Guaranty and Assumption of Obligations agreement is included as an exhibit.
While Exhibit A contains the Franchise Agreement, it is not clear if this agreement includes specific guaranty and assumption obligations or if those obligations are detailed in a separate document. Item 23 lists the exhibits included in the Franchise Disclosure Document, such as the Franchise Agreement, State Addenda, Financial Statements, and a list of current and former franchisees. However, a specific exhibit dedicated to outlining the 1 800 Packouts Guaranty and Assumption of Obligations is not listed.
Therefore, a prospective franchisee should confirm with 1 800 Packouts whether a separate Guaranty and Assumption of Obligations agreement exists and, if so, request a copy for review. Understanding the full scope of obligations and liabilities is crucial before entering into a franchise agreement.