Under what conditions is the General Release executed for a 1 800 Packouts franchise?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS GENERAL RELEASE ("Release") is executed on |
|---|
| by |
| ("Franchisee"), |
| ("Guarantors"), |
| ("Transferee") as a condition of (1) |
| the transfer of the Franchise Agreement |
| dated [month] [day], [year] |
| between 1-800-Packouts Holdco, LLC ("Franchisor") and Franchisee ("Franchise Agreement"); or |
| (2) |
| the execution of a successor Franchise Agreement by Franchisee and Franchisor. (If this Release is |
| executed under the conditions set forth in (2) above, all references in this Release to "Transferee" should |
| be ignored.) |
| This Release does not apply to claims arising under the Washington Franchise Investment |
| Protection Act, chapter 19.100 RCW, or the rules adopted thereunder. |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, a General Release is executed under specific conditions related to the franchise agreement. This release is required from the franchisee, any guarantors, and any transferee.
The General Release is executed as a condition of either the transfer of the Franchise Agreement or the execution of a successor Franchise Agreement between the franchisee and 1 800 Packouts. If the release is related to a successor agreement, references to a "Transferee" are disregarded.
However, the 1 800 Packouts FDD also notes that this release does not apply to claims arising under the Washington Franchise Investment Protection Act. Furthermore, riders to the franchise agreement for use in Maryland, Minnesota, and North Dakota contain stipulations that general releases signed as a condition to transfer or renewal will not apply to claims arising under their respective state franchise laws, to the extent prohibited by law.