Is the monthly NROP fee for a 1 800 Packouts franchise a fixed amount, or does it vary?

According to 1 800 Packouts's 2025 Franchise Disclosure Document, the monthly NROP (National Revenue Optimization Program) fee varies over time. For the first year (Months 0-12) of the agreement, there is no NROP fee. Months 13 and 14 incur a fee 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 onward, the NROP fee is $2,000 per month.

This escalating fee structure means that a new 1 800 Packouts franchisee will have lower initial costs for marketing and revenue optimization, allowing them to focus on establishing their business. However, the fee gradually increases, which may impact profitability as the business matures. Franchisees need to factor these increasing costs into their financial projections and business plans.

Additionally, the 1 800 Packouts FDD states that the NROP fee is owed regardless of whether the franchisee enrolls in all, some, or none of the NROP programs. This means that even if a franchisee chooses not to participate in certain NROP programs, they are still obligated to pay the full NROP fee. This is an important consideration for prospective franchisees, as they should evaluate the potential benefits of the NROP programs against the mandatory fee.