What do the advertising and marketing costs for 1 800 Packouts primarily consist of?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
the contractual terms of the lease and the location of the leased asset. The present value is adjusted for prepaid lease payments, lease incentives, and initial direct costs. Lease expense is recognized for these leases on a straight-line basis over the expected lease term. Non-lease costs,such as common-area mainte
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the advertising and marketing costs included in operating expenses primarily consist of collateral marketing materials. These costs are expensed as they are incurred and are included in selling, general, and administrative expenses.
In 2024, these advertising and marketing expenses totaled $1,995,154, while in 2023, they amounted to $2,089,788. This indicates a slight decrease in advertising and marketing costs from 2023 to 2024.
For a prospective franchisee, this information provides insight into the type and scale of marketing support and expenses typically incurred by 1 800 Packouts. It is important to note that these figures represent the franchisor's expenses and not necessarily the advertising costs a franchisee will incur, as franchisees are required to conduct local advertising in addition to paying a marketing fee.