What is the duration of the initial period where the monthly NROP fee is $0 for a 1 800 Packouts franchise?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Month of Agreement | Monthly NROP Fee |
|---|---|
| Month 0 through Month 12 | $0 |
| Months 13-14 | $500/month |
| Months 15-16 | $1,000/month |
| Months 17-18 | $1,500/month |
| Months 19 and thereafter | $2,000/month |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, new franchisees benefit from a period where they are not required to pay the monthly National Revenue Optimization Program (NROP) fee. Specifically, for the first 12 months (Month 0 through Month 12) of the franchise agreement, the monthly NROP fee is set at $0.
This initial fee waiver provides a significant financial benefit to new 1 800 Packouts franchisees during their startup phase. It allows them to allocate resources to other critical areas of their business, such as marketing, staffing, and operational expenses, without the added burden of the NROP fee. This can be particularly helpful in managing cash flow and achieving profitability in the early stages of the franchise.
After this initial 12-month period, the NROP fee gradually increases. Months 13-14 see the fee rise to $500 per month, followed by $1,000 per month for Months 15-16, and $1,500 per month for Months 17-18. By Month 19 and thereafter, the NROP fee stabilizes at $2,000 per month. This graduated fee structure allows franchisees to adjust to the expense as their business matures and generates more revenue.