What is the monthly NROP fee for a 1 800 Packouts franchise during months 17-18 of the 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 1 800 Packouts's 2025 Franchise Disclosure Document, the monthly National Revenue Optimization Program (NROP) fee for months 17-18 of the franchise agreement is $1,500 per month. This fee structure is part of a graduated payment plan for the NROP, where the fee increases over time.
Specifically, during the initial 12 months (Month 0 through Month 12) of the agreement, franchisees are not required to pay any NROP fee. This initial period may allow new franchisees to establish their business without the added expense of the NROP fee. Following this, the fee increases to $500 per month for Months 13-14, then to $1,000 per month for Months 15-16, before reaching $1,500 per month for Months 17-18.
After Month 18, the NROP fee further increases to $2,000 per month for Month 19 and all subsequent months. This escalating fee structure suggests that 1 800 Packouts expects franchisees to become more established and generate higher revenues over time, justifying the increased investment in the national revenue optimization program. Franchisees should factor these increasing fees into their financial projections to ensure they can maintain profitability as the NROP fees increase.