What was the cash paid for interest by 1 800 Packouts in 2024?
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 |
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 2024 was $5,748,129. This figure represents the actual cash outflow for interest expenses during that year.
For a prospective franchisee, this indicates the level of debt 1 800 Packouts carries and its associated interest obligations. It is important to note that this is a figure at the company level, not necessarily reflective of an individual franchise's debt or interest payments.
Understanding the franchisor's financial obligations can provide insight into the overall financial health and stability of 1 800 Packouts. A high interest payment may indicate significant debt, which could impact the franchisor's ability to support its franchisees or invest in growth. Therefore, a potential franchisee should consider this figure in the context of the company's overall financial performance and future plans.