What is the 'NROP' program 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. The Franchisor cannot guarantee the Franchisee's participation in these programs, nor can we guarantee any number of jobs from these programs. If you are not compliant with your Franchise Agreement, program requirements (as established by such TPAs, or Regional/National account parties), or fail to perform program work adequately, the Franchisor may direct TPA or Regional/National referrals to another franchisee or itself.
Protected Call Center Referrals. You will receive Call Center leads received by the Franchisor for your assigned zip codes. If you are not compliant with your Franchise Agreement, the Franchisor may direct these leads to another franchisee or to itself.
Protected Office Location. No other 1-800-Packouts Business may establish an office location within Franchisee's Territory. The Franchisee may not advertise or establish an office outside the Territory without Franchisor's prior written consent. Within the Territory, the Franchisee have the right to advertise, market, solicit and service any customer desiring inventorying, packing, moving, cleaning, deodorizing and storage services except as described in this section.
Clarifying Terms (Pre-Existing Exceptions). Notwithstanding the generality of the foregoing, the Franchisor shall take reasonably available measures, including enforcement of rights under other franchise agreements, to assure that no other franchisee of Franchisor conducts advertising, marketing, and related digital campaigns or activities within the Territory under any agreement entered into from and after the date of this Addendum. The Franchisor further agrees that for so long as Franchisee remains in good standing under the Franchise Agreement and is not in default, Franchisor will not open a company-owned location in the Territory.
Source: Item 12 — TERRITORY (FDD pages 40–43)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the National/Regional Opportunity Protection program, or "NROP," is designed to provide franchisees with certain marketing protections in exchange for their participation in national and regional programs. 1 800 Packouts aims to benefit franchisees by enrolling insurance companies, third-party administrators, and similar organizations in the NROP program. However, 1 800 Packouts does not guarantee that enrollees in the NROP program will provide benefits to franchisees within their territories. Franchisees are required to pay the NROP fee regardless of whether they participate in all, some, or none of the NROP programs.
As part of the NROP, 1 800 Packouts negotiates agreements with insurance companies or other businesses with multiple locations, referred to as "National Accounts." These agreements allow 1 800 Packouts and its franchisees to provide services to these companies or their customers. 1 800 Packouts has sole discretion over designating customers as National Accounts, setting the terms of these agreements, and allocating the business among franchisees. The franchisor can designate any current or prospective customer as a National Account without compensating the franchisee. Franchisees must service National Account customers according to the negotiated pricing and terms, which may be less than their standard pricing, and must adhere to any prescribed rules, including response times of less than 24 hours. Franchisees are prohibited from entering into conflicting arrangements with National Accounts, and account-specific NROP terms are detailed in the Operations Manual.
Franchisees receive TPA and Regional/National referrals for their assigned zip codes, but 1 800 Packouts does not guarantee participation in these programs or any specific number of jobs. If a franchisee fails to comply with the Franchise Agreement, program requirements, or adequately perform program work, 1 800 Packouts may direct referrals to another franchisee or itself. Franchisees also receive call center leads for their assigned zip codes, but non-compliance with the Franchise Agreement may result in these leads being directed elsewhere. No other 1 800 Packouts business may establish an office location within a franchisee's territory, and franchisees may not advertise or establish an office outside their territory without prior written consent. Franchisees have the right to market, solicit, and service customers within their territory, except as otherwise described in the agreement.