Does the 1 800 Packouts franchise agreement allow for any exceptions to the NROP fee schedule?
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 the 2025 FDD, the 1 800 Packouts franchise agreement outlines a specific National/Regional Opportunity Protection (NROP) fee schedule. During the first 12 months (Month 0 through Month 12) of the agreement, franchisees are not required to pay any monthly NROP fee.
Thereafter, the monthly NROP fee increases incrementally. Months 13-14 require a payment of $500 per month, Months 15-16 increase the fee to $1,000 per month, and Months 17-18 further raise it to $1,500 per month. By Month 19 and for the remainder of the agreement, the monthly NROP fee is set at $2,000.
The FDD excerpt does not explicitly state any exceptions to this NROP fee schedule. It is important for prospective franchisees to clarify with 1 800 Packouts whether any circumstances might warrant a deviation from this standard fee structure, such as temporary financial hardship or failure to meet certain performance metrics. Understanding the rigidity or flexibility of this fee schedule is crucial for financial planning.