Does 1 800 Packouts typically own or lease the premises to the franchisee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
We generally do not own the premises or lease the premises to you.
The lease for the Facility must allow for the installation of all equipment and other items necessary to operate the Franchised Business.
In addition, the lease shall provide, if required by us, that it be assignable to us or our designee at our option, upon termination or expiration of this Agreement, and shall also contain such terms and provisions as are reasonably approved by us.
Currently, we do not specify other required lease terms.
There is no time limit for the completion of our review of your lease or purchase contract, but we anticipate completing our review within 10 days of your submission.
If we do not approve the terms of the lease or purchase contract and you are unable to locate another site with satisfactory lease or purchase terms in enough time to open the Franchised Business within 180 days after the effective date of the Franchise Agreement, we may terminate the Franchise Agreement, in which case you will forfeit your Initial Franchise Fee. (Franchise Agreement – Section 3.A)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 32–39)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the franchisor generally does not own or lease the premises to the franchisee. However, 1 800 Packouts retains the right to review and approve or disapprove the terms of the lease or purchase contract for the franchisee's business location.
The franchisor's approval of the proposed location is based on factors such as adequate parking for the franchisee's vehicle (including any truck or trailer) and sufficient space for storing customer contents. The location must also be of adequate size to support operations and have high-speed internet access for the franchisee and staff.
The lease for the facility must allow for the installation of all necessary equipment. Additionally, the lease should include a provision, if required by 1 800 Packouts, that it can be assigned to the franchisor or their designee upon termination or expiration of the Franchise Agreement. If the franchisor does not approve the lease or purchase contract terms, and the franchisee cannot find another suitable site within 180 days of the Franchise Agreement's effective date, 1 800 Packouts may terminate the agreement, resulting in the franchisee forfeiting the initial franchise fee.