Are the 1 800 Packouts financial statements for the franchise itself or its Parent company?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
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| RHODE ISLAND Department of Business Regulation – Securities Division John O. Pastore Complex 1511 Pontiac Avenue Building 69-1 Cranston, Rhode Island 02902 (401) 462-9500 | WASHINGTON Department of Financial Institutions Securities Division - 3rd Floor West 150 Israel Road, S.W. Tumwater, Washington 98501 PO Box 9033 Olympia, Washington 98507 (360) 902-8760 |
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| SOUTH DAKOTA Department of Labor and Regulation Securities Regulation Office 445 E. Capitol Avenue Pierre, South Dakota 57501-3185 (605) 773-4823 | WISCONSIN Office of the Commissioner of Securities 345 West Washington Avenue, Fourth Floor Madison, Wisconsin 53703 (608) 261-9555 |
EXHIBIT D TO THE FRANCHISE DISCLOSURE DOCUMENT FINANCIAL STATEMENTS
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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 provided are for FS PEP Holdco, LLC and Subsidiaries, the parent company of 1 800 Packouts Holdco, LLC. The consolidated financial statements include balance sheets as of December 31, 2024 and 2023, along with statements of operations, members' equity, and cash flows for the years then ended. These statements have been audited by independent auditors.
The inclusion of the parent company's financials is a common practice in franchising, especially when the franchisor is a newly formed entity or has limited operating history. This gives prospective franchisees a broader view of the financial health and stability of the overall organization behind the 1 800 Packouts franchise system.
It's important to note that the financial statements also include the activity of CMY Holdco, LLC (Card My Yard Franchising, LLC) due to its acquisition in March 2024. The 2023 financial statements of Card My Yard Franchising, LLC, which reflect total assets of $10,040,671 and total revenues of $3,521,565, were audited by other auditors. This means that the overall financial picture includes operations outside of the 1 800 Packouts business itself. A prospective franchisee should consider this when evaluating the financial performance to understand the full scope of the parent company's business activities.