Under what conditions is the transfer fee payable to 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
nd reimburse us for the travel, lodging, and per |
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| diem expenses of any personnel providing on site assistance. If we provide on-site opening assistance and you do not request it, we will not require you to pay these fees and expenses. | |||
| Additional Guidance and Assistance | Per diem fees and charges we establish, currently $300 per day. | As incurred | Payable if we provide additional guidance or assistance upon your request. |
| Testing Fee for Products and Services | Our then-current reasonable fees. Currently, we intend to charge our actual cost of testing the proposed product or evaluating the proposed service, including personnel and travel costs. | Upon demand | Payable if you wish to offer products or use any supplies, equipment, or services that we have not approved, whether or not we approve the item or service. |
| Renewal Fee | $10,000 | At the time of renewal | Payable if you enter into a renewal term for your license |
| Transfer fee | 50% of the Initial Franchise Fee at the time of transfer. Note, any sales commission owed as a result of your transfer shall remain your obligation, in addition to the Transfer Fee. | At the time of transfer | Payable upon transfer of the Franchise Agreement, the Franc |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, a transfer fee is required when a franchisee transfers their rights under the Franchise Agreement, the Franchised Business itself, or a controlling interest in the franchisee's business entity. The transfer fee is equal to 50% of the initial franchise fee at the time of the transfer.
In addition to the transfer fee, the franchisee is responsible for any sales commissions owed as a result of the transfer. This means that if a broker is used to facilitate the sale of the franchise, the franchisee will be responsible for paying the broker's commission.
This fee is payable at the time of the transfer. It's important for prospective franchisees to understand these costs associated with transferring their franchise, as they can significantly impact the financial outcome of selling the business. Franchisees should factor in both the transfer fee and any potential sales commissions when considering a sale.