What was the amortization of goodwill and intangible assets for 1 800 Packouts in 2023?

According to 1 800 Packouts's 2025 Franchise Disclosure Document, the amortization expense resulting from goodwill and intangible assets was $11,179,113 for the year ended December 31, 2023. This figure reflects the accounting practice of spreading the cost of these assets over their useful life, rather than expensing the entire cost in the year of acquisition. For a prospective franchisee, this indicates the scale of 1 800 Packouts's investments in its brand, franchise agreements, and goodwill.

Amortization is a non-cash expense, meaning it does not represent an actual outflow of cash during the year. However, it does reduce the company's reported profit. The amount of amortization can be influenced by several factors, including the value of acquired intangible assets, their estimated useful lives, and the amortization method used.

Understanding the amortization expense can help a franchisee assess the financial health and acquisition strategy of 1 800 Packouts. A high amortization expense may be the result of recent acquisitions, while a consistent amortization expense could indicate stable intangible assets. Reviewing the company's financial statements and notes can provide further insights into the nature and value of these assets.