What was the amortization of operating lease right-of-use assets for 1 800 Packouts in 2022?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
terest expense | | (3,821,499) | | (647,029) | | Earnings from unconsolidated subsidiary | | - | | 77,537 | | Gain on sale of unconsolidated subsidiary | | 1,025,637 | | - | | Other income (expense) | _ | (51,463) | | (112,956) | | Total other expense, net | _ | (2,847,325) | | (682,448) | | Loss before income taxes | | (11,719,346) | | (6,523,717) | | Income tax benefit | _ | 1,280,676 | | 374,421 | | Net loss | $ | (10,438,670) | s | (6,149,296) |
| Balance as of April 9, 2021 (inception) | $ | |
|---|---|---|
| Contributions | 47,557,681 | |
| Net loss | (6,149,296) | |
| Balance as of December 31, 2021 | 41,408,385 | |
| Contributions | 35,555,980 | |
| Distributions | (250,000) | |
| Net loss | _ | (10,438,670) |
| Balance as of December |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the amortization of operating lease right-of-use assets for the year ended December 31, 2022, was $108,253. This figure reflects the expense recognized during that period related to the use of leased assets, which 1 800 Packouts utilizes in its operations.
For a prospective franchisee, this indicates that 1 800 Packouts accounts for its leases by recognizing right-of-use assets and lease liabilities on its balance sheet. The amortization expense represents the systematic allocation of the cost of the right-of-use asset over its useful life, impacting the company's profitability. Understanding this expense is crucial for assessing the overall financial health and operational costs of 1 800 Packouts.
The 2022 figure can be compared to the amortization of operating lease right-of-use assets for the year 2023, which was $265,177. This shows a notable increase in this expense from 2022 to 2023. Such changes could be due to various factors, such as new leases, changes in lease terms, or reassessments of the useful lives of the leased assets. A potential franchisee should investigate the reasons behind this increase to fully understand its implications for future financial performance.