When is the transfer fee due to 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| diem expenses of any personnel providing on site assistance. If we provide on-site opening assistance and you do not request it, we will not require you to pay these fees and expenses. | |||
| Additional Guidance and Assistance | Per diem fees and charges we establish, currently $300 per day. | As incurred | Payable if we provide additional guidance or assistance upon your request. |
| Testing Fee for Products and Services | Our then-current reasonable fees. Currently, we intend to charge our actual cost of testing the proposed product or evaluating the proposed service, including personnel and travel costs. | Upon demand | Payable if you wish to offer products or use any supplies, equipment, or services that we have not approved, whether or not we approve the item or service. |
| Renewal Fee | $10,000 | At the time of renewal | Payable if you enter into a renewal term for your license |
| Transfer fee | 50% of the Initial Franchise Fee at the time of transfer. Note, any sales commission owed as a result of your transfer shall remain your obligation, in addition to the Transfer Fee. | At the time of transfer | Payable upon transfer of the Franchise Agreement, the Franchised Business, or a controlling interest in you. |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the transfer fee is due "at the time of transfer." The amount of this fee is 50% of the initial franchise fee at the time of the transfer.
It's important to note that in addition to the transfer fee, any sales commission owed as a result of the transfer remains the franchisee's obligation. This means that a franchisee looking to sell their 1 800 Packouts business needs to be prepared to pay both the transfer fee to 1 800 Packouts and any commission to a broker or other party involved in facilitating the sale.
This is a fairly standard practice in franchising. Transfer fees are typically assessed to cover the franchisor's costs of reviewing and approving the transfer, as well as updating documentation and providing training to the new franchisee. The prospective franchisee should carefully consider these costs when planning for a potential sale.