What is the significance of 'Month 0' in the context of the 1 800 Packouts franchise agreement and the NROP fee?
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, 'Month 0' through 'Month 12' of the franchise agreement represents a period where the franchisee is not required to pay the monthly National Revenue Optimization Program (NROP) fee. This initial fee waiver is likely intended to provide financial relief to new franchisees as they establish their 1 800 Packouts business.
The NROP fee structure then increases incrementally over the subsequent months. Months 13-14 require a payment of $500 per month, months 15-16 increase to $1,000 per month, and months 17-18 further increase to $1,500 per month. Finally, from month 19 onward, the NROP fee stabilizes at $2,000 per month.
This graduated fee structure suggests that 1 800 Packouts aims to support franchisees during their initial ramp-up phase, allowing them to allocate resources towards business development and operational setup before fully contributing to the national revenue optimization program. Prospective franchisees should factor these increasing NROP fees into their financial projections to ensure they can meet these obligations as their business matures.