Under what circumstances is the Rider to the 1 800 Packouts Franchise Agreement used?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
t signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including, fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed with the franchise.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2024 | 2023 | ||
|---|---|---|---|
| Current: | |||
| Federal | $(133,183) | $(262,480) | |
| State | 244 | (78,963) | |
| Total current | (132,939) | (341,443) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NEW YORK
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement that has been signed concurrently with the signing of this Rider (the "Franchise Agreement"). This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) the offer or sale of the franchise for the Franchised Business that you will operate under the Franchise Agreement was made in the State of New York, and/or (b) you are a resident of New York and will operate the Franchised Business in New York.
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- Releases. The following language is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
- , provided, however, that to the extent required by Article 33 of the General Business Law of the State of New York, all rights you enjoy and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of the proviso that the non-waiver provisions of GBL 687 and 687.5 be satisfied.
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- Transfer by Franchisor. The following language is added to the end of Section 14.A of the Franchise Agreement:
However, no assignment will be made except to an assignee who, in our good faith judgment, is willing and financially able to assume our obligations under this Agreement.
- Termination by Franchisee. The following language is added to the end of Section 15.A of the Franchise Agreement:
You also may terminate the Agreement on any grounds available by law.
- Governing Law/Consent to Jurisdiction. The following language is added to the end of Sections 17.A and 17.B of the Franchise Agreement:
However, to the extent required by Article 33 of the General Business Law of the State of New York, this Section shall not be considered a waiver of any right conferred upon you by the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder.
- Limitation of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:
To the extent required by Article 33 of the General Business Law of the State of New York, all rights and any causes of action arising in your favor from the provisions of Article 33 of the General Business Law of the State of New York and the regulations issued thereunder shall remain in force; it being the intent of this provision that the non-waiver provisions of GBL Sections 687.4 and 687.5 be satisfied.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| Federal | 453,482 | (292,567) |
|---|---|---|
| State | 111,856 | (131,688) |
| Total deferred | 565,338 | (424,255) |
| Total benefit (provision) for income taxes | $432,399 | $(765,698) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of North Dakota and the Franchised Business that you will operate under the Franchise Agreement will be located in North Dakota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in North Dakota.
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- Releases. The following is added to the end of Sections 2.D(4) and 14.C(6) of the Franchise Agreement:
Any general release shall not apply to the extent prohibited by law with respect to claims arising under the North Dakota Franchise Investment Law.
- Covenant Not to Compete. The following is added to the end of Section 16.E of the Franchise Agreement:
Covenants not to compete such as those mentioned above generally are considered unenforceable in North Dakota. However, we will seek to enforce them to the extent enforceable.
- Consent To Jurisdiction. The following language is added to the end of Section 17.A of the Franchise Agreement:
However, that to the extent required by applicable law, you may bring an action in North Dakota.
- Governing Law. The following language is added to the end of Section 17.B of the Franchise Agreement:
Notwithstanding the foregoing, to the extent required by the North Dakota Franchise Investment Law, North Dakota law will apply to this Agreement.
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- Waiver of Punitive Damages. Section 17.C of the Franchise Agreement is hereby deleted.
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- Waiver of Jury Trial. Section 17.D of the Franchise Agreement is hereby deleted.
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- Limitations of Claims. The following language is added to the end of Section 17.G of the Franchise Agreement:
The time limitations set forth in this Section might be modified by the North Dakota Franchise Investment Law.
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| 2024 | 2023 | |
|---|---|---|
| Deferred income tax assets (liabilities): | ||
| Intangible assets | $(5,284,048) | $(5,747,861) |
| Deferred costs | (153,662) | (16,114) |
| Fixed assets | (36,969) | (44,540) |
| Deferred revenue | 249,196 | 140,945 |
| NOL carryforwards | 287,562 | 166,613 |
| Other | (4,146) | (6,448) |
| $(4,942,067) | $(5,507,405) |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN RHODE ISLAND
This Rider (the "Rider") is made and entered into as of the Agreement Date as stated in the Franchise Agreement (defined below), between you, __________________________________________, as Franchisee, and us, 1-800-Packouts Holdco, LLC, a Georgia limited liability company, as Franchisor.
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- Background. We and you are parties to that certain Franchise Agreement effective as of _______________________ (the "Franchise Agreement") that has been signed concurrently with the signing of this Rider. This Rider is annexed to and forms part of the Franchise Agreement. This Rider is being signed because (a) you are a resident of Rhode Island and the Franchised Business that you will operate under the Franchise Agreement will be located in Rhode Island; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Rhode Island.
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- Consent to Jurisdiction. The following language is added to the end of Section 17.A of the Franchise Agreement:
However, to the extent required by applicable law, you may bring an action in Rhode Island for claims arising under the Rhode Island Franchise Investment Act.
- Governing Law. The following language is added to the end of Section 17.B of the Franchise Agreement:
Notwithstanding the foregoing, to the extent required by applicable law, Rhode Island law will apply to claims arising under the Rhode Island Franchise Investment Act. Section 19- 28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
[Signatures on following page]
IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the Rider to the Franchise Agreement is used when specific conditions related to the franchisee's location or activities occur. The Rider modifies the standard Franchise Agreement to account for state-specific laws and regulations. There are different versions of the Rider for different states, including New York, Minnesota, Maryland, North Dakota, and Washington.
For New York, the Rider is used if the offer or sale of the franchise was made in New York, or if the franchisee is a resident of New York and will operate the franchised business there. This Rider ensures compliance with Article 33 of the General Business Law of New York. For Minnesota, the Rider applies if the franchised business will be located in Minnesota, or if any franchise offering or sales activity occurred there. The Minnesota Rider addresses issues such as releases, renewal, and termination in accordance with Minnesota franchise law.
In Maryland, the Rider is used if the franchisee is a resident of Maryland, or if the franchised business will be located in Maryland. This Rider includes provisions related to releases, consent to jurisdiction, and governing law, ensuring adherence to the Maryland Franchise Registration and Disclosure Law. For North Dakota, the Rider is applied if the franchisee is a resident of North Dakota and the franchised business is located there, or if any franchise offering or sales activity took place in North Dakota. The North Dakota Rider covers releases, covenants not to compete, and consent to jurisdiction.
For Washington, the Rider is used if the franchised business will be located in Washington, if the franchisee is a resident of Washington, or if any franchise offering or sales activity occurred in Washington. This Rider acknowledges the requirements of the Washington Franchise Investment Protection Act and addresses potential conflicts of law. In summary, the Rider to the 1 800 Packouts Franchise Agreement is a state-specific addendum that modifies the standard agreement to comply with local franchise laws and regulations, providing additional protections and clarifications for franchisees operating in those states.