What transfer fee does 1 800 Packouts charge, and how is it calculated?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) the transferee has sufficient business experience, aptitude and financial resources to operate the Franchised Business;
- (2) you have paid all Royalty Fees, Marketing Fees, and amounts owed for purchases from us and all other amounts owed to us or to third-party creditors and have submitted all required reports and statements;
- (3) the transferee has agreed to complete System/Procedure Training to our satisfaction;
- (4) the transferee has agreed to execute our then-current form of franchise agreement for the remaining term of this Agreement;
- (5) you or the transferee pay us a transfer fee equal to 50% of the initial franchise fee then being charged for Franchised Businesses, to defray expenses we incur in connection with the transfer;
- (6) you and your transferring Owners have executed a general release, in a form satisfactory to us, of any and all claims against us and our affiliates and our and their shareholders, officers, directors, employees and agents;
- (7) you and your transferring Owners have executed a non-competition agreement in favor of us and the transferee agrees to be bound, commencing on the effective date of the transfer, by the restrictions contained in Sections C (Confidential Information) and 16.D (Covenant Not to Compete) of this Agreement; and
- (8) you and your transferring Owners have agreed that you and they will not directly or indirectly at any time or in any manner (except with respect to other Franchised Businesses you own and operate) identify themselves or any business as a current or former Franchised Business or as one of our licensees or franchisees or use any Mark, any colorable imitation thereof or other indicia of a Franchised Business in any manner or for any purpose or utilize for any purpose any trade name, trademark or service mark or other commercial symbol that suggests or indicates a connection or association with us.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, a franchisee who is transferring their franchise must pay a transfer fee. This fee is equal to 50% of the initial franchise fee that 1 800 Packouts is charging at the time of the transfer for new franchises. The purpose of this fee is to cover the expenses that 1 800 Packouts incurs during the transfer process.
In order to transfer a 1 800 Packouts franchise, the franchisee must meet several conditions. The potential new franchisee must have sufficient business experience, aptitude, and financial resources to successfully operate the business. All outstanding payments, including Royalty Fees, Marketing Fees, and any other amounts owed to 1 800 Packouts or third-party creditors, must be paid in full. The franchisee also needs to submit all required reports and statements.
The transferee must also agree to complete the System/Procedure Training to 1 800 Packouts' satisfaction and agree to execute the then-current form of the franchise agreement for the remaining term. Both the transferring franchisee and their owners must execute a general release of any claims against 1 800 Packouts and its affiliates, as well as a non-competition agreement. Finally, the transferring franchisee and their owners must agree not to identify themselves or any business as a current or former 1 800 Packouts franchisee or use any trademarks or commercial symbols associated with 1 800 Packouts.