Does the 1 800 Packouts franchise agreement provide any details on how the NROP fees are used?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
y other than you to establish a Franchised Business or Facility in Your Territory during the term of this Agreement and (ii) If we receive any leads relating to jobs located in Your Territory, we will promptly provide you with the relevant information.
Your marketing protections are governed by the following provisions referred to as your National/Regional Opportunity Protection (or "NROP"):
-
- Protected Advertising. No other 1-800-Packouts business may advertise in Franchisee's Territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within such Territory. It is acknowledged that Franchisee may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising—none of which shall comprise a breach of this provision.
-
- Protected TPA and Regional/National Referrals. Franchisee will receive TPA and Regional/National referrals for your assigned zip codes in accordance with program requirements. The Franchisor cannot guarantee the Franchisee's participation in these programs, nor can we guarantee any number of jobs from these programs. If you are not compliant with your Franchise Agreement, program requirements (as established by such TPAs, or Regional/National account parties), or fail to perform program work adequately, the Franchisor may direct TPA or Regional/National referrals to another franchisee or itself.
-
- Protected Call Center Referrals.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the franchisee's marketing protections are governed by the National/Regional Opportunity Protection (NROP). The NROP includes protected advertising, meaning no other 1 800 Packouts business may advertise in the franchisee's territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within such territory. However, the agreement acknowledges that franchisees may experience some indirect advertising from other franchisees in media where the reach is difficult to restrict, such as radio or indirect web-based advertising. This indirect advertising will not be considered a breach of the agreement.
Additionally, the NROP includes protected TPA and Regional/National referrals. Franchisees will receive TPA and Regional/National referrals for their assigned zip codes in accordance with program requirements. However, 1 800 Packouts cannot guarantee the franchisee's participation in these programs or any number of jobs from these programs. If a franchisee is not compliant with their Franchise Agreement, program requirements, or fails to perform program work adequately, 1 800 Packouts may direct TPA or Regional/National referrals to another franchisee or itself.
The NROP fee structure is also detailed in the FDD. During the first 12 months of the agreement, the monthly NROP fee is $0. Months 13-14 require a fee of $500 per month, months 15-16 require $1,000 per month, months 17-18 require $1,500 per month, and months 19 and thereafter require $2,000 per month. The franchisee's NROP fee is owed regardless of whether they enroll in all, some, or none of the NROP programs.