What was the amount of management fees that 1 800 Packouts paid in 2023 to a company member?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ompany, which require that certain severance payments are made in the event of termination without cause.
c. Indemnification Agreements
Under the Company's organizational documents, the Company's officers, employees and directors are indemnified against ce
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the company paid management fees to a member of the company. In 2023, 1 800 Packouts paid $870,389 in management fees. In 2024, the company paid $784,283 in management fees.
These management fees are based on a percentage of revenues. It is important to note that these fees are paid to a member of 1 800 Packouts, indicating a related-party transaction.
Prospective franchisees should be aware of these related-party transactions and how they might affect the financial performance of the franchise. Understanding the nature of these management fees and the services provided in exchange for them is crucial for assessing the overall value and potential profitability of a 1 800 Packouts franchise.