Is there a specific exhibit that outlines the 1 800 Packouts Nondisclosure and Noncompete Agreement?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
The following agreements are attached as exhibits to this disclosure document:
Franchise Agreement (Exhibit A)
Nondisclosure and Noncompete Agreement (Appendix C to Exhibit A) Guaranty and Assumption of Obligations (Appendix D to Exhibit A) State Agreement Riders (Exhibit B) General Release (Exhibit G)
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts FDD, the Nondisclosure and Noncompete Agreement is included as part of the franchise agreement. Specifically, Item 22 states that the Nondisclosure and Noncompete Agreement is listed as Appendix C to Exhibit A of the disclosure document. Exhibit A contains the standard Franchise Agreement.
This means that prospective franchisees can review the exact terms of the Nondisclosure and Noncompete Agreement before signing the Franchise Agreement. It is common practice for franchise agreements to include clauses that protect the franchisor's confidential information and prevent franchisees from competing with the system, both during the franchise term and for a period after the agreement terminates.
Furthermore, 1 800 Packouts may require officers, directors, managers, owners' spouses, and other designated individuals to execute similar nondisclosure and noncompete agreements. These agreements will give 1 800 Packouts the independent right to enforce them. Therefore, it is important for potential franchisees to carefully review Appendix C to Exhibit A, and understand the restrictions it places on them and their personnel.