What is the 'NROP Fee' for 1 800 Packouts franchisees?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
1,000,000 people, in the event the population exceeds 1,250,000 people you will be required to purchase an additional franchise.
You receive certain marketing protection afforded you under the Agreement, and in consideration of your participation in our national/regional programs. Such are collectively referred to as our National/Regional Opportunity Protection program or "NROP." As we enroll insurance companies, third-party administrators, or other similar organizations in this NROP program for the benefit of the System, our objective is to benefit our franchisees; however, we cannot assure that any enrollees in our NROP program will provide you such benefits in your Territory. Your NROP Fee is owed regardless if whether you enroll in all, some, or none of the NROP programs.
Protected Advertising. No other 1-800-Packouts business may advertise in Franchisee's Territory in print, media, door-to-door, mass electronic communication, or direct web-based advertising within such Territory. It is acknowledged that Franchisee may experience some indirect/carry-over advertising from other franchisees in media where the reach of advertising is difficult to restrict to zip codes, such as radio or indirect web-based advertising—none of which shall comprise a breach of this provision.
Protected TPA and Regional/National Referrals. Franchisee will receive TPA and Regional/National referrals for your assigned zip codes in accordance with program requirements.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to the 2025 1 800 Packouts Franchise Disclosure Document, the NROP (National/Regional Opportunity Protection) fee is mentioned in the context of marketing protection and participation in national/regional programs. The FDD states that the franchisee's NROP Fee is owed regardless of whether they enroll in all, some, or none of the NROP programs. However, the exact amount of the NROP fee is not specified in the provided Item 12 excerpts.
The document does mention that if a franchisee acquires an "Add-on Territory" because their Territory's population exceeds 1,000,000 during two consecutive years, there is an immediate corresponding addition to their NROP Fee of $1,000. This implies that there is an existing NROP fee, but the base amount is not disclosed in this section.
Prospective 1 800 Packouts franchisees should inquire with the franchisor about the specific amount of the NROP fee, how it is calculated, and when it is due. Understanding the full cost structure associated with the franchise, including the NROP fee, is essential for making an informed investment decision. Franchisees should also ask for details on the benefits they can expect to receive from participating in the NROP program and how these benefits might offset the cost of the fee.