When is the Royalty Fee due for a 1 800 Packouts franchise?

Question

Accepted Answer

3. "**Gross Sales**" means all revenue of the Franchised Business, including all sales of products and services to customers of the Franchised Business, but excluding excise, sales and use taxes, gross receipts taxes or similar taxes you pay based on revenues, if those taxes are separately stated when the customer is charged.

| 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 af

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).
| Type of Fee1   | Amount                                                                                                                               | Due Date           | Remarks                                                                                                                                                                                                                                                                |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Systems Fee    | Reasonable fees will apply for modifications or enhancement to the Management Systems.                                | As incurred        | If we make modifications or enhancements to the Management Systems specifically for franchisee software licenses, or other maintenance and support services, a reasonable systems fee will apply. |
| Management Fee | 10% of Gross Sales | As or if incurred. | If |
|  |  |  | we |
|  |  |  | assume |
|  |  |  | management |
|  |  |  | of |
|  |  |  | your |
|  |  |  | franchised business you |
|  |  |  | will |
|  |  |  | incur |
|  |  |  | a |
|  |  |  | management |
|  |  |  | fee |
|  |  |  | in |
|  |  |  | consideration |
|  |  |  | of |
|  |  |  | our |
|  |  |  | services |
|  |  |  | to |
|  |  |  | perform |
|  |  |  | such management. |
| Annual Conference Fee                  | Then-current registration rate, per franchise location you own                                                                                                                                                                                                              | February 1st each year. | We will host annual conferences. You will obligated to bear the cost of wages and any travel and living expenses incurred by you or other attendees. |
| Type of Fee1                  | Amount                                                                                                                                                                                                                                                                                                                                                                                     | Due Date                                                                     | Remarks                                                                                                                                                                                                                                                                                        |
|-------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Non-Reporting Fee | $25 per day | Each day that you have failed to deliver reports or records due to us. | You will be charged this fee for each report or record which you have agreed to deliver to us, per day, beginning the first day following the due date on which you have not reported, and continuing through the date when you deliver such reports or records.

Source: Item 6 — OTHER FEES (FDD pages 17–22)

When is the Royalty Fee due for a 1 800 Packouts franchise?

Answer from 2025 FDD Document

What This Means (2025 FDD)

Type of Fee1	Amount	Due Date	Remarks
Systems Fee	Reasonable fees will apply for modifications or enhancement to the Management Systems.	As incurred	If we make modifications or enhancements to the Management Systems specifically for franchisee software licenses, or other maintenance and support services, a reasonable systems fee will apply.
Management Fee	10% of Gross Sales	As or if incurred.	If
			we
			assume
			management
			of
			your
			franchised business you
			will
			incur
			a
			management
			fee
			in
			consideration
			of
			our
			services
			to
			perform
			such management.
Annual Conference Fee	Then-current registration rate, per franchise location you own	February 1st each year.	We will host annual conferences. You will obligated to bear the cost of wages and any travel and living expenses incurred by you or other attendees.
Type of Fee1	Amount	Due Date	Remarks
-------------------------------	--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------	------------------------------------------------------------------------------	--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Non-Reporting Fee	$25 per day	Each day that you have failed to deliver reports or records due to us.	You will be charged this fee for each report or record which you have agreed to deliver to us, per day, beginning the first day following the due date on which you have not reported, and continuing through the date when you deliver such reports or records.