When is the Marketing Fee due for a 1 800 Packouts franchise?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
es freight/shipping costs.
ITEM 6 OTHER FEES
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| National/Regional Opportunity Protection ("NROP") Fee | $500 to $2,000 per month based on the population in your Territory. See Note 2. | Payable on the 7th day of each month beginning on the payment cycle following your opening (or after 180 days of signing the agreement). | If the population of your Territory changes, we will provide you with 30 days' notice before requiring you to pay a revised NROP Fee. |
| Royalty Fee | 7% of Gross Sales3 | Due on the 15th of the month following receipt of payment from client. | If you allow an invoice to remain unpaid, the Accounts Receivable amount associated with that invoice shall have Royalty Fees and Marketing Fees owed upon your receipt of payment or after 180 days, whichever comes first. |
| Marketing Fee | 3% of Gross Sales | Due upon receipt of payment from client. | You must contribute the Marketing Fee to an advertising fund that we will operate (the "Brand Fund"). See 11 for information regarding the Brand Fund. |
| Advertising Cooperative Contributions | Established by regional advertising cooperative ("Cooperative") members | Established by Cooperative members and, if established, paid to us. | You must become a member of and contribute to any Cooperative that is established in your area. Franchisor-owned outlets in such an area will have the same voting power as other outlets. |
| Bookkeeping Services | Established rates, presently $200- $500/month | As incurred | Paid for ongoing bookkeeping or basic accounting services, to designated vendor(s). |
| Interest on Late Payments | Rate of 1.5% per month or the highest rate |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the Marketing Fee, which is 3% of Gross Sales, is due upon receipt of payment from the client. 1 800 Packouts requires franchisees to contribute this fee to an advertising fund, referred to as the "Brand Fund", which the franchisor operates. More information about the Brand Fund can be found in Item 11 of the FDD.
This means that a 1 800 Packouts franchisee must remit 3% of whatever revenue they have received from customers to the Brand Fund as soon as they receive that payment. This contrasts with the Royalty Fee, which is due on the 15th of the month following receipt of payment from the client. The Marketing Fee is intended to support brand-building and marketing efforts managed by 1 800 Packouts.
It is important for prospective franchisees to understand how the Brand Fund is managed and how the marketing fees are utilized. Item 11 of the FDD should provide details on the fund's governance, how funds are allocated, and the types of marketing activities it supports. Franchisees should also inquire about the performance and effectiveness of the Brand Fund's marketing initiatives to ensure their contributions are being used effectively to drive business growth.