Does the 1 800 Packouts franchise agreement specify how the monthly NROP fee is calculated?
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.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the monthly NROP (National Revenue Optimization Program) fee is initially determined by the population within the franchisee's territory. The FDD states that the initial population of the territory is specified in Appendix A. 1 800 Packouts uses territory mapping software to determine the current population. The agreement specifies that the maximum initial population permitted in any territory is 1,500,000 people. Franchisees are notified of any changes to their NROP fee at least 30 days before the revised fee goes into effect, should the population data provider update the data for the franchisee's territory.
If the population in the territory exceeds 1,250,000 people during each of two consecutive years, the franchisee is required to purchase an Add-on Territory or an additional franchise to maintain the 1,500,000 person population limit. Should the population exceed 1,250,000 people during the term of the 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). The franchisee owes the NROP Fee regardless of whether they enroll in all, some, or none of the NROP programs.
The 1 800 Packouts FDD also provides a table outlining the monthly NROP fee during the initial months of the agreement. During months 0 through 12, the monthly NROP fee is $0. Months 13-14 require a payment of $500 per month. This increases to $1,000 per month for months 15-16, and $1,500 per month for months 17-18. Finally, months 19 and thereafter require a payment of $2,000 per month.