Under what agreement are the Marks licensed to 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
All of the Marks are licensed to us pursuant to a License Agreement with Packout Holdings dated as of July 2, 2015 (the "License Agreement"). In the License Agreement, Packout Holdings authorized us to use the Marks in connection with the offer, sale, and support of Franchised Businesses. The License Agreement does not contain any significant limitations on our right to use or license the Marks to you and is perpetual in duration and may be terminated unilaterally by either party only upon a material breach of the License Agreement. Upon termination of the License Agreement, we must immediately discontinue the use of the Marks and assign to Packout Holdings all of our franchise agreements licensing the use of the Marks, and Packout Holdings has agreed to assume all obligations under such agreements arising from and after their assignment.
Source: Item 13 — TRADEMARKS (FDD pages 44–45)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the Marks are licensed to 1 800 Packouts under a License Agreement with Packout Holdings dated July 2, 2015. Packout Holdings authorized 1 800 Packouts to use the Marks for the offer, sale, and support of Franchised Businesses.
The License Agreement does not contain any significant limitations on 1 800 Packouts's right to use or license the Marks to franchisees. The agreement is perpetual in duration and can only be terminated unilaterally by either party upon a material breach of the License Agreement.
In the event of termination of the License Agreement, 1 800 Packouts must immediately stop using the Marks and assign all franchise agreements licensing the use of the Marks to Packout Holdings. Packout Holdings has agreed to assume all obligations under such agreements arising from and after their assignment. This arrangement ensures that franchisees would continue to have the right to use the Marks even if the License Agreement between 1 800 Packouts and Packout Holdings is terminated.