Under what two 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 the 2025 1 800 Packouts Franchise Disclosure Document, a General Release is executed under two specific conditions. These conditions are related to the transfer of the Franchise Agreement or the execution of a successor Franchise Agreement. The General Release is signed by the Franchisee, Guarantors, and Transferee.
The first condition requiring the execution of the General Release is the transfer of the existing Franchise Agreement, which is dated between the Franchisor, 1-800-Packouts Holdco, LLC, and the Franchisee. In this scenario, all parties involved in the transfer, including the Franchisee, Guarantors, and the Transferee (the party to whom the franchise is being transferred), must sign the release.
The second condition necessitating the General Release is the execution of a successor Franchise Agreement between the Franchisee and the Franchisor. This typically occurs when the initial franchise term is expiring, and the Franchisee wishes to continue operating under a new agreement. In this case, the reference to "Transferee" in the release is disregarded, as there is no transfer of ownership involved, only a renewal of the agreement with the existing Franchisee. The Release does not apply to claims arising under the Washington Franchise Investment Protection Act, chapter 19.100 RCW, or the rules adopted thereunder.