Are there any financial thresholds that affect the NROP fee for a 1 800 Packouts franchise?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
(the "NROP Fee") based on the number of people located in Your Territory in accordance with the following chart:
| 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 initial population of Your Territory is specified in Appendix A. If our population data provider provides us with updated data for Your Territory, we will notify you of any change in your NROP Fee at least 30 days before you must begin paying the revised Population Fee. You agree that the maximum initial population permitted in any Territory is 1,500,000 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 during each of two consecutive years, you shall be required to purchase an Add-on Territory or an additional franchise(s) to maintain the 1,500,000 person population limit.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to the 2025 FDD, the NROP (National Revenue Optimization Program) fee for a 1 800 Packouts franchise is affected by the population size within the franchisee's territory. The initial population of the territory is specified in Appendix A. If the population in a franchisee's territory exceeds 1,250,000 people during each of two consecutive years, the franchisee is required to purchase an Add-on Territory or an additional franchise to maintain the population limit of 1,500,000 people.
Furthermore, should the population exceed 1,250,000 people during the term of the agreement, the population fee will increase at a rate of $500 for each 250,000 people. For example, if the population is between 1,000,001 and 1,250,000, the fee would be $2,500 per month. The franchisee owes the NROP fee regardless of their enrollment status in the NROP programs.
Additionally, during the initial months of the agreement, the monthly NROP fee varies. It starts at $0 for the first 12 months, then increases to $500 per month for months 13-14, $1,000 per month for months 15-16, and $1,500 per month for months 17-18, eventually settling at $2,000 per month from month 19 onwards. This phased increase in fees could help franchisees manage their initial investment and cash flow as they establish their 1 800 Packouts business.