Under what conditions is the Rider signed in conjunction with the 1 800 Packouts Franchise Agreement?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement and the outlet is opened. |
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IN WITNESS WHEREOF, the parties have executed and delivered this Rider effective on the Agreement Date.
| Short-term lease cost | 133,893 | 200,074 |
|---|---|---|
| Total | $559,807 | $606,205 |
RIDER TO THE 1-800-Packouts Holdco, LLC FRANCHISE AGREEMENT FOR USE IN MINNESOTA
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) the Franchised Business that you will operate under the Franchise Agreement will be located in Minnesota; and/or (b) any of the offering or sales activity relating to the Franchise Agreement occurred in Minnesota.
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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 release required as a condition of renewal and/or assignment/transfer will not apply to the extent prohibited by the Minnesota Franchises Law.
- Renewal and Termination. The following is added to the end of Sections 2.D and 15.B of the Franchise Agreement:
However, with respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice of non-renewal of this Agreement.
- Consent to Jurisdiction. The following is added to the end of Section 17.A of the Franchise Agreement:
However, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibits us, except in certain specified cases, from requiring litigation to be conducted outside Minnesota. Nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Governing Law. The following is added to the end of Section 17.B of the Franchise Agreement:
However, nothing in this Agreement shall abrogate or reduce any of your rights under Minnesota Statutes Chapter 80C or your right to any procedure, forum or remedies that the laws of the jurisdiction provide.
- Limitations of Claims. The following is added to the end of Section 17.G of the Franchise Agreement:
Minnesota law provides that no action may be commenced under Minn. Stat. Sec. 80C.17 more than three (3) years after the cause of action accrues.
No statement, questionnaire, or acknowledgement 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.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, a Rider is signed in conjunction with the Franchise Agreement under specific conditions related to the franchisee's location or activities within certain states. These states include Minnesota, Maryland, New York, North Dakota, Washington, and Rhode Island. The Rider is signed concurrently with the Franchise Agreement and becomes part of it.
For Minnesota, the Rider is required if the franchised business will be located in Minnesota, or if any of the offering or sales activity related to the Franchise Agreement occurred in Minnesota. For Maryland, the Rider is necessary if the franchisee is a resident of Maryland or if the franchised business will be located in Maryland. In New York, a Rider is required 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 business there.
For North Dakota, the Rider is signed if the franchisee is a resident of North Dakota and the business will be located there, or if any of the offering or sales activity occurred in North Dakota. In Washington, a Rider is needed if the franchised business will be located in Washington, if the franchisee is a resident of Washington, or if any of the offering or sales activity occurred in Washington. For Rhode Island, the Rider is required if the franchisee is a resident of Rhode Island and the business will be located there, or if any of the offering or sales activity occurred in Rhode Island. These Riders modify certain sections of the standard Franchise Agreement to comply with specific state laws, particularly concerning issues like releases, covenants not to compete, jurisdiction, and governing law.