What is the difference in cash between 2023 and 2024 for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
opinion on the effectiveness of the Company'sinternal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
April 23, 2025
| (1) | 2024 | 2023 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ | 3,690,691 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the company's cash holdings experienced a notable increase between 2023 and 2024. In 2024, the company held $3,690,691 in cash, compared to $1,455,349 in 2023. This represents an increase of $2,235,342 in cash holdings year-over-year. This substantial increase in cash may reflect improved financial performance, successful fundraising, or other strategic financial decisions made by the company during that period.
Additionally, the FDD indicates that 1 800 Packouts held $840,143 in restricted cash in 2023, but no restricted cash is listed for 2024. The reconciliation of cash and restricted cash shows a combined total of $2,295,492 in 2023 and $3,690,691 in 2024. This suggests a shift in how 1 800 Packouts managed its liquid assets, potentially freeing up previously restricted funds for operational or investment purposes.
For a prospective franchisee, this information is valuable as it provides insight into the financial health and stability of 1 800 Packouts. A strong cash position can enable the company to invest in growth initiatives, support franchisees, and weather economic downturns. Understanding the reasons behind the increase in cash and the elimination of restricted cash could be a key area of inquiry for potential franchisees during their due diligence process.