What was the estimated useful life of the franchise agreements acquired by 1 800 Packouts?

According to the 2025 FDD, when 1 800 Packouts acquired subsidiary entities, the franchise agreements were valued using an excess of earnings discounted cash flows method. The estimated useful life of these franchise agreements was determined to be between 13 to 15 years. This valuation and estimated useful life are part of the accounting practices 1 800 Packouts uses following business combinations. These figures are relevant as they affect the company's balance sheet and how its assets are valued over time.

For a prospective franchisee, this information provides insight into how 1 800 Packouts accounts for acquired franchise agreements. The estimated useful life of 13 to 15 years suggests the period over which 1 800 Packouts expects to realize the economic benefits from these agreements. This can be a factor in assessing the long-term financial planning and stability of the company.

It's important to note that these figures relate to franchise agreements acquired by 1 800 Packouts, not necessarily the term of a new franchise agreement offered to a franchisee. The term of the franchise agreement between 1 800 Packouts and its franchisees is typically outlined elsewhere in the FDD, such as in Item 17, and should be carefully reviewed by potential franchisees.