How is the 1 800 Packouts National/Regional Opportunity Protection (NROP) Fee determined?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| National/Regional Opportunity Protection ("NROP") Fee | $500 to $2,000 per month based on the population in your Territory. See Note 2. | Payable on the 7th day of each month beginning on the payment cycle following your opening (or after 180 days of signing the agreement). | If the population of your Territory changes, we will provide you with 30 days' notice before requiring you to pay a revised NROP Fee. |
| 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 maximum initial population permitted in any Territory is 1,000,000 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, you shall be required to purchase additional franchise(s)and if the population exceeds 1,000,000 people during the term of your agreement the NROP fee will increase at the same rate of $500 per each 250,000 people detailed in the table above (i.e., 1,000,001 to 1,250,000 would be $2,500 per month).
If your Territory's population exceeds 1,000,000 during two consecutive years, you may acquire an "Addon Territory" of up to 500,000, at an Add-on Territory Fee of $30,000, with an immediate corresponding addition to your NROP Fee of $1,000.
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the National/Regional Opportunity Protection (NROP) Fee is determined by the population size within the franchisee's territory. The NROP fee ranges from $500 to $2,000 per month, depending on the population. This fee is payable on the 7th day of each month, starting from the payment cycle following the opening of the franchise or after 180 days of signing the agreement. 1 800 Packouts will provide a 30-day notice to the franchisee before requiring payment of a revised NROP Fee if the territory's population changes.
Initially, franchisees do not pay the NROP fee for the first 12 months of the agreement. The fee then increases incrementally: $500 per month for months 13-14, $1,000 per month for months 15-16, and $1,500 per month for months 17-18. Starting in month 19, the NROP fee is $2,000 per month. The maximum initial population permitted in a territory is 1,000,000 people, determined using territory mapping software.
If the population in the franchisee's territory exceeds 1,250,000 people, the franchisee must purchase additional franchises. If the population exceeds 1,000,000 during the term of the agreement, the NROP fee increases by $500 for each additional 250,000 people. For example, a population between 1,000,001 and 1,250,000 would result in a $2,500 per month NROP fee. If the territory's population exceeds 1,000,000 for two consecutive years, the franchisee can acquire an "Add-on Territory" of up to 500,000 people for a fee of $30,000, which immediately increases the NROP fee by $1,000.
This fee structure incentivizes franchisees to manage and potentially expand their territories as the population grows, while also ensuring 1 800 Packouts benefits from increased market presence. Prospective franchisees should carefully consider the population and growth trends in their territory to anticipate future NROP fee obligations and potential expansion opportunities.