Does the 1 800 Packouts franchise agreement specify the method of payment for the NROP fee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty Fees and the Marketing Fee will be due and payable by Electronic Funds Transfer ("EFT"), or such other method as we may prescribe, upon the earlier occurring of i) when payment is received from the client or ii) 180 days following the initial service date with the client. You must notify us within no more than three (3) days of any payment being received by uploading a copy of the check into the tracking system. In the event that it is discovered you have not properly notified us of payments, we shall have the right to charge any interest or penalties proscribed by this agreement. We may require that you authorize us to initiate debit or credit entries and/or credit collection entries to your bank and that you make funds available for withdrawal by EFT no later than the due date for payment. We reserve the right to collect these fees on a weekly basis if you are delinquent in any Royalty Fees or Marketing Fee payments three times in any 12-month period.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the method of payment for the Royalty Fees and Marketing Fee, which would include the NROP fee, is specified. These fees are due and payable via Electronic Funds Transfer (EFT) or another method that 1 800 Packouts may prescribe.
The payment is due upon the earlier of when payment is received from the client or 180 days following the initial service date with the client. Franchisees must notify 1 800 Packouts within three days of receiving any payment by uploading a copy of the check into the tracking system. Failure to provide proper notification may result in interest or penalties.
1 800 Packouts may require franchisees to authorize debit or credit entries to their bank account for fee withdrawals via EFT, ensuring funds are available by the due date. If a franchisee is delinquent in Royalty Fees or Marketing Fee payments three times within a 12-month period, 1 800 Packouts reserves the right to collect these fees on a weekly basis.