Are the financial statements in the 1 800 Packouts FDD consolidated financial statements?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
FS PEP HOLDCO, LLC and SUBSIDIARIES
Consolidated Financial Statements As of December 31, 2024 and 2023 and For the Years Then Ended
Independent Auditors' Report
(1) To the Board of Managers of FS PEP Holdco, LLC
Opinion
We have audited the accompanying consolidated financial statements of FS PEP Holdco, LLC and subsidiaries (collectively, the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of operations, members' equity, and cash flows for the years then ended, and the related notesto consolidated financialstatements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of FS PEP Holdco, LLC and subsidiaries as of December 31, 2024 and 2023, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 65–66)
What This Means (2025 FDD)
According to the 2025 FDD, the financial statements included are consolidated financial statements. Specifically, the financial statements are for FS PEP Holdco, LLC and its subsidiaries. FS PEP Holdco, LLC is a holding company that acquires and operates home services related franchisor companies, including 1-800-Packouts. The consolidated financial statements include the accounts of FS PEP Holdco, LLC and its wholly owned subsidiaries such as Five Star Connect, Inc.; Gotcha Covered Franchising, LLC; Ringside Development Company; Bio-One IP Group, LLC; Ringside Group, LLC; Mosquito Shield Franchise, LLC; 1-800-Packounts Holdco, LLC; CMY Holdco, LLC; Five Star Bath, Inc; Five Star Franchising, LLC; and its wholly owned subsidiary Five Star Bath, LLC. All intercompany balances and transactions have been eliminated during consolidation.
The inclusion of consolidated financial statements is a standard practice in franchising when the franchisor is a holding company with multiple subsidiaries. This approach provides a comprehensive view of the financial health of the entire organization, rather than just the individual franchisor entity. This gives prospective 1 800 Packouts franchisees insight into the financial stability of the parent company, FS PEP Holdco, LLC, and its various holdings.
Furthermore, the independent auditor's report included in the FDD confirms that the consolidated financial statements of FS PEP Holdco, LLC and subsidiaries present fairly, in all material respects, the financial position as of December 31, 2024 and 2023, and the results of their operations and their cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. This opinion from an independent auditor adds credibility to the financial statements and provides assurance to potential franchisees.