What was the cash paid for interest by 1 800 Packouts in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | Members' Equity | |||
|---|---|---|---|---|
| Balance as of January 1, 2023 | $ | 77,059,237 | ||
| Equity-based compensation | 201,589 | |||
| Net | (15,967,953) | |||
| loss | ||||
| Balance as of December 31, 2023 | 61,292,873 | |||
| Equity-based compensation | 163,300 | |||
| Member units issued for acquisition (Note 2) | 3,000,000 | |||
| Repurchase of member units | (4,878,129) | |||
| Net | (12,250,006) | |||
| l |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the cash paid for interest in 2023 was $5,102,711. This figure represents the actual cash outflow for interest expenses during that year.
For a prospective franchisee, understanding the cash paid for interest is crucial as it reflects the company's debt obligations and financial health. A high interest payment could indicate significant borrowing, which might impact the company's profitability and ability to support its franchisees. Conversely, a lower figure might suggest better financial management and less reliance on debt.
This information is typically found in the cash flow statement, providing insights into the company's financing activities. Reviewing these figures over several years can reveal trends in 1 800 Packouts's borrowing and repayment patterns, offering a more comprehensive view of its financial stability. Franchisees should consider this data alongside other financial metrics to assess the overall risk and potential of investing in a 1 800 Packouts franchise.