What was the amount of 1 800 Packouts' revolving credit facility in 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- | | | Intangible assets, net | $ 98,235,306 | $ 116,543,252 |
Amortization expense resulting from goodwill and intangible assets was $11,662,770 and $12,639,099 for the years ended December 31, 2024 and 2023, respectively.
The future aggregate amounts of amortization expense to be recognized related to definite-lived intangible assets as of December 31, 2024, are asfollows:
| $ 11,668,434 11,668,434 11,668,434 11,668,434 11,668,434 |
|---|
| 39,893,136 |
| 98,235,306 |
| $ |
4. Long-Term Debt and Revolving Credit Facility
In connection with the acquisitions of subsidiary companies in prior years, the Company entered into a financing arrangement with Deerpath Fund Services, LLC (Deerpath
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the company had a revolving credit facility with available draws up to $2,000,000. As of December 31, 2024, 1 800 Packouts had drawn $1,100,000 from this facility.
This means that 1 800 Packouts had access to a line of credit, and they had utilized over half of it by the end of 2024. The interest rate on the loans is a 3-month term SOFR plus 5.65%, which equaled 10.24% as of December 31, 2024. This credit facility is part of a larger financing arrangement with Deerpath Fund Services, LLC, which matures on September 3, 2026.
For a prospective franchisee, this indicates that 1 800 Packouts has access to capital, which can be a sign of financial stability. However, it also means that the company has debt obligations that it must meet. It would be prudent for a potential franchisee to inquire about the terms of the credit facility and how it might impact the franchisor's ability to support its franchisees.
Understanding the financial health of the franchisor is crucial, and this information provides a glimpse into 1 800 Packouts' financial strategy and obligations. A franchisee should consider this in conjunction with other financial disclosures in the FDD to assess the overall risk and stability of the franchise system.