Will 1 800 Packouts unreasonably withhold approval of a transfer of the Franchise Agreement by the franchisee?

According to 1 800 Packouts' 2025 Franchise Disclosure Document, 1 800 Packouts will not unreasonably withhold approval of any transfer of the Franchise Agreement. However, 1 800 Packouts does have conditions for approving a transfer.

These conditions include that the new owner must have sufficient business experience, aptitude, and financial resources to operate the Franchised Business. Additionally, the franchisee must pay all amounts due to 1 800 Packouts and its affiliates. The new owner must also complete 1 800 Packouts' training program to their satisfaction.

Furthermore, the franchisee must pay 1 800 Packouts a transfer fee of 50% of their then-current initial franchise fee. Both the franchisee and their transferring owners must sign a general release in favor of 1 800 Packouts and its affiliates, as well as their officers, directors, employees, and agents, if state law allows. Finally, the franchisee and their transferring owners must agree not to identify as a current or former Franchised Business or franchisee and must not use any Mark or other indicia of a Franchised Business. 1 800 Packouts must also be properly offered the opportunity to exercise their right of first refusal and decline to exercise it.

As a prospective franchisee, it is important to understand these conditions and ensure that any potential buyer meets these requirements to facilitate a smooth transfer process. It is also important to note the transfer fee of 50% of the then-current initial franchise fee, which could be a significant cost to consider when planning to sell the franchise.