Under what conditions will 1 800 Packouts provide notice before revising the NROP Fee?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| 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 after 180 days of signing the agreement). | If the population of your Territory changes, we will provide you with 30 days' not |
Source: Item 6 — OTHER FEES (FDD pages 17–22)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the company will provide a franchisee with 30 days' notice before requiring them to pay a revised National/Regional Opportunity Protection (NROP) Fee if the population of their territory changes. The NROP fee itself ranges from $500 to $2,000 per month, depending on the population in the franchisee's territory. This fee is payable on the 7th day of each month, starting from the payment cycle following the franchisee's opening or after 180 days of signing the agreement.
This policy ensures that 1 800 Packouts franchisees have some advance warning if their NROP fee is set to change due to population shifts in their territory. This allows franchisees to prepare for the adjustment in their monthly expenses. The initial NROP fee is based on the territory's population at the time the franchise agreement is signed, but this can be adjusted if the population changes significantly during the term of the agreement.
It's important to note that the maximum initial population permitted in any territory is 1,000,000 people. If the population in a franchisee's territory exceeds 1,250,000, the franchisee will be required to purchase additional franchises. Additionally, if the population exceeds 1,000,000 during the term of the agreement, the NROP fee will increase at a rate of $500 for each 250,000 people. For example, a population between 1,000,001 and 1,250,000 would result in a fee of $2,500 per month.
If a territory's population exceeds 1,000,000 for two consecutive years, the franchisee may acquire an "Add-on Territory" of up to 500,000 people. The fee for this add-on territory is $30,000, which results in an immediate increase of $1,000 to the NROP fee. These population-based adjustments to the NROP fee and territory size are designed to ensure that 1 800 Packouts franchisees are appropriately compensated for the market potential in their area.