Does the 1 800 Packouts franchise agreement specify any fees other than the monthly NROP fee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
(the "NROP Fee") based on the number of people located in Your Territory in accordance with the following chart:
| 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 |
The initial population of Your Territory is specified in Appendix A. If our population data provider provides us with updated data for Your Territory, we will notify you of any change in your NROP Fee at least 30 days before you must begin paying the revised Population Fee. You agree that the maximum initial population permitted in any Territory is 1,500,000 people. In order to determine current population we use territory mapping software. In the event the population in the Territory exceeds 1,250,000 people during each of two consecutive years, you shall be required to purchase an Add-on Territory or an additional franchise(s) to maintain the 1,500,000 person population limit. Should the population exceed 1,250,000 people during the term of your agreement the population fee will increase at the same rate of $500 per each 250,000 people detailed in the table above (i.e., 1,000,001 to 1,250,000 would be $2,500 per month). Your NROP Fee is owed regardless if whether you enroll in all, some, or none of the NROP programs.
D. ROYALTY FEES
You must pay us a monthly royalty fee (the "Royalty Fee") equal to 7% of the monthly Gross Sales of the Franchised Business.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, franchisees must pay a monthly royalty fee in addition to the NROP fee. The royalty fee is 7% of the monthly Gross Sales of the Franchised Business. Gross Sales includes all revenue from sales of products and services, but excludes excise, sales, use, and gross receipts taxes if these are separately stated when charging the customer, as well as bona fide refunds actually paid to customers.
The NROP fee varies during the first 19 months of the agreement. Months 0 through 12 have no NROP fee. Months 13 and 14 are $500 per month. Months 15 and 16 are $1,000 per month. Months 17 and 18 are $1,500 per month. Months 19 and thereafter are $2,000 per month.
Additionally, if the population in the franchisee's territory exceeds 1,250,000 people for two consecutive years, the franchisee must purchase an add-on territory or additional franchises to maintain the 1,500,000 person population limit. If the population exceeds 1,250,000 people during the term of the agreement, the population fee will increase at a rate of $500 for each 250,000 people. For example, a population of 1,000,001 to 1,250,000 would result in a fee of $2,500 per month. The NROP Fee is owed regardless if whether you enroll in all, some, or none of the NROP programs.