What was the interest expense for 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
00 | | Goodwill | _ | | 72,717,748 | 40,961,091 | | Total intangible assets | | | 131,167,748 | 75,441,091 | | Less: accumulated amortization | _ | | (13,111,503) | (2,543,033) | | Intangible assets, net | $ | ò | 118,056,245 | $ 72,898,058 |
Amortization expense resulting from goodwill and intangible assets was $10,568,470 and $2,543,033 for the year ended December 31, 2022 and for the period from inception through December 31, 2021, respectively.
The future aggregate amounts of amortization expense to be recognized related to definite-lived intangible assets as of December 31, 2022 is as follows:
| 2023 | $ 11,186,801 |
|---|---|
| 2024 | 11,186,801 |
| 2025 | 11,186,801 |
| 2026 | 11,186,801 |
| 2027 | 11,186,801 |
| Thereafter | 62,122,240 $ 118,056,245 |
4. Long-Term Debt
In connection with the acquisitions of the subsidiary companies, the Company entered into a financing arrangement with Deerpath Fund Services, LLC (Deerpath) that matures on September 3, 2026. Under the financing arrangement, the Company received an initial term loan with a principal amount of $28,000,000, to be used for the 2021 acquisitions as well as amounts available for future transactions as follows: (1) up to an aggregate of $15,000,000 available as delayed draw term loans, which was fully used for the Packouts and Mosquito Shield acquisitions in 2022, and (2) contingent amounts of up to $25,000,000 available for future
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 1 800 Packouts's parent company, 1-800-Packouts Holdco, LLC, entered into a financing arrangement with Deerpath Fund Services, LLC. This arrangement, which matures on September 3, 2026, included an initial term loan of $28,000,000 used for acquisitions in 2021, as well as up to $15,000,000 in delayed draw term loans fully used for acquisitions of Packouts and Mosquito Shield in 2022. Additionally, there were contingent amounts up to $25,000,000 available for future financing, of which $5,100,000 was drawn for the Mosquito Shield acquisition.
The loans bear an interest rate of LIBOR plus 5.50%, which was 9.24% as of December 31, 2022. As of December 31, 2022, the amounts drawn on the facility totaled $48,100,000, compared to $28,000,000 as of December 31, 2021. The facility also provided a revolving line with available draws up to $2,000,000, which remained undrawn as of December 31, 2022 and 2021.
In addition, the company had short-term notes payable with former owners of subsidiary entities amounting to $78,594, which were fully repaid in 2022. As part of the Mosquito Shield acquisition, the company acquired $59,801 of notes payable to a financial institution, which were also fully repaid during 2022. The document does not explicitly state the total interest expense for 1 800 Packouts. A prospective franchisee should inquire with 1 800 Packouts about their total interest expenses.