What is the maximum initial population permitted in any territory for a 1 800 Packouts franchise?
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 1,5
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, 1 800 Packouts specifies that the maximum initial population permitted in any territory is 1,500,000 people. The FDD also states that 1 800 Packouts uses territory mapping software to determine the current population.
If the population in a franchisee's territory exceeds 1,250,000 people during each of two consecutive years, the franchisee will be required to purchase an add-on territory or an additional franchise to maintain the 1,500,000 person population limit. This condition ensures that the franchisee's exclusive territory remains manageable and that the population density does not outgrow the franchisee's capacity to serve the area effectively.
Furthermore, should the population exceed 1,250,000 people during the term of the agreement, the population fee will increase at a rate of $500 per each 250,000 people. For example, a population between 1,000,001 and 1,250,000 would incur a fee of $2,500 per month. The NROP (National/Regional Opportunity Protection) Fee is owed regardless of whether the franchisee enrolls in all, some, or none of the NROP programs. This fee structure incentivizes franchisees to manage their territory's growth and consider expansion options as the population increases.