What is the maximum population allowed in a 1 800 Packouts territory?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be granted a territory ("Your Territory"). Your Territory will not be exclusive. You may face competition from other franchisees, from company-owned businesses, or from other channels of distribution or competitive brands that we control. Your Territory will be described in an exhibit to the Franchise Agreement and will be determined in our sole discretion based upon population density, demographics and other Franchised Business operations in the market. Territories may range from 1 to 1,000,000 people. Your Territory may not exceed a population of 1,000,000 people, in the event the population exceeds 1,250,000 people you will be required to purchase an additional franchise.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, a franchisee's territory will be determined based on population density, demographics, and other franchised business operations. The territory may range from 1 to 1,000,000 people.
The maximum population for a 1 800 Packouts territory is 1,000,000 people. However, if the population in a franchisee's territory exceeds 1,250,000 people, the franchisee is required to purchase an additional franchise. This condition ensures that as the population grows, 1 800 Packouts can maintain adequate service levels and market coverage by adding more franchisees.
This requirement to purchase an additional franchise if the population exceeds 1,250,000 has significant financial implications for a franchisee. It means that a successful franchisee in a rapidly growing area may face a substantial additional investment to maintain their territory. The initial franchise fee for an add-on territory is $30,000, along with an immediate increase of $1,000 to the NROP fee.
Prospective franchisees should carefully consider the growth potential of their territory and factor in the potential cost of acquiring additional franchises if the population increases significantly. It would be prudent to discuss with 1 800 Packouts the criteria and process for determining when an additional franchise is required and the potential availability of territories adjacent to the initial franchise.