How is the 'Monthly NROP Fee' defined within the 1 800 Packouts franchise agreement?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 National Revenue Optimization Program (NROP) Fee is structured as follows: For the first 12 months (Month 0 through Month 12) of the agreement, the fee is $0. Months 13 and 14 require a payment of $500 per month. This increases to $1,000 per month for Months 15 and 16, and then to $1,500 per month for Months 17 and 18. Finally, from Month 19 onwards, the Monthly NROP Fee is set at $2,000 per month.
This escalating fee structure means that new 1 800 Packouts franchisees will not incur this particular marketing expense during their initial year of operation, potentially easing their startup costs. However, franchisees should anticipate a gradual increase in this fee over the subsequent months, eventually reaching $2,000 per month. This fee is owed regardless of whether the franchisee enrolls in all, some, or none of the NROP programs.
Prospective franchisees should carefully consider this increasing expense when projecting their operating costs and revenue. It is important to understand what specific benefits and services are included within the NROP to assess whether the increasing fees provide a worthwhile return on investment for their 1 800 Packouts franchise.