What was the depreciation of fixed 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, 202 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the depreciation of fixed assets for the year ended December 31, 2022, was $29,104.
Depreciation of fixed assets is a non-cash expense that reflects the reduction in value of tangible assets (like equipment and buildings) over time due to wear and tear or obsolescence. This accounting practice allows 1 800 Packouts to spread the cost of these assets over their useful lives, rather than expensing the entire cost in the year of purchase.
For a prospective franchisee, understanding depreciation is important for assessing the overall financial health and profitability of 1 800 Packouts. While depreciation itself doesn't represent an actual cash outflow, it does reduce the company's net income, which can impact taxes and other financial metrics. A consistent and reasonable depreciation expense can indicate sound financial management and investment in necessary equipment and infrastructure.