What actions are required by the 1 800 Packouts franchisee regarding the monthly NROP fee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ase sign and return one copy to us and keep the other copy for your records.
EXHIBIT A TO THE FRANCHISE DISCLOSURE DOCUMENT
FRANCHISE AGREEMENT
FRANCHISE AGREEMENT
| Month of Agreement | Monthly NROP Fee |
|---|---|
| Month 0 through Month 12 | $0 |
| Months 13-14 | $500/month |
| Months 15-16 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the monthly National/Regional Opportunity Protection (NROP) fee varies over the first 19 months of the agreement. For the first year (months 0-12), the franchisee pays $0. In months 13 and 14, the fee is $500 per month. It then increases to $1,000 per month for months 15 and 16, and to $1,500 per month for months 17 and 18. Finally, from month 19 onward, the monthly NROP fee is $2,000.
1 800 Packouts franchisees are obligated to pay the NROP fee regardless of their participation level in the NROP programs. This means a franchisee cannot avoid the fee by opting out of some or all of the programs covered by NROP.
It is important for prospective 1 800 Packouts franchisees to factor these increasing NROP fees into their financial projections. While the initial months have lower or no fees, the cost rises significantly over time, potentially impacting profitability. Franchisees should also evaluate the benefits they expect to receive from the NROP programs to determine if the cost aligns with the value received.