What was the year that 1 800 Packouts settled all claims related to the lawsuits with 1 800 Packouts of Ohio, LLC?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ty State Of Georgia, filed July 30, 2019).*
Our franchisee, 1-800-Packouts of Ohio, LLC, filed a lawsuit against us seeking a declaratory judgment that we had breached our duties under the Akron Area Franchise Agreement and that the franchisee could review the annual unaudited statements of the Brand Fund. On July 30, 2019, we filed a lawsuit against the franchisee and Jack Schwartz alleging that they had breached the Akron Area Franchise Agreement, Cleveland Area Franchise Agreement, Akron Area Guaranty and Assumption Agreement, and Cleveland Area Guaranty and Assumption Agreement by, among other things, failing to pay all amounts due and failing to provide all necessary reports. In May 2020, we settled all claims and both lawsuits were dismissed with prejudice.
ITEM 4 BANKRUPTCY
No bankruptcy information is required to be disclosed in this Item.
ITEM 5 INITIAL FEES
If you are starting a new Franchised Business, you must pay a lump sum initial franchise fee of $62,500 (the "Initial Franchise Fee") at the time that you sign the Franchise Agreement. The Initial Franchise Fee is non-refundable and must be paid in a lump sum.
Source: Item 3 — LITIGATION (FDD page 14)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, in May 2020, 1 800 Packouts settled all claims and both lawsuits with 1-800-Packouts of Ohio, LLC, and the lawsuits were dismissed with prejudice.
This settlement resolved a dispute that began with 1-800-Packouts of Ohio, LLC, filing a lawsuit against 1 800 Packouts, alleging a breach of duties under their franchise agreement. 1 800 Packouts then countersued, claiming the franchisee and Jack Schwartz breached their agreements by failing to pay amounts due and provide necessary reports.
The resolution of these lawsuits means that the specific issues between 1 800 Packouts and its Ohio franchisee were legally concluded. The term "dismissed with prejudice" indicates that the lawsuits cannot be brought back to court again on the same claims. Additionally, a separate settlement agreement was made with the former franchisee, 1-800-Packouts of Ohio, LLC, and its principal Jack Schwartz, which included confidentiality and non-disparagement provisions.