In March 2024, what brand did 1 800 Packouts acquire?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
uired assets and liabilities assumed. The excess of the purchase price over the fair value of the net assets givesrise to goodwill.
The following table sets forth the allocation of the purchase consideration to the assets acquired and liabilities assumed:
| Total consideration Rollover equity Cash acquired | $ 4,100,000 (3,000,000) (108,054) |
|---|---|
| Net cash paid | $ 991,946 |
| Cash | $ 108,054 |
| Accounts receivable | 50,956 |
| Prepaids and other assets | 634,944 |
| Operating lease right-of-use asset | 219,457 |
| Goodwill | 3,354,824 |
| Operating lease liability | (219,457) |
| Other | (48,778) |
| liabilities | |
| assumed | |
| Total purchase price | $ 4,100,000 |
j. Legal Settlement
During 2024,theCompany entered into a settlementagreementfor claimsmade underthe indemnity clause ofthe purchase agreement for the 2022 acquisition agreement of 1-800 Packouts, LLC (Packouts). The
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 1 800 Packouts does not state that 1 800 Packouts acquired any brand in March 2024. The document mentions a settlement agreement in March 2024, but this agreement relates to a legal dispute regarding the 2022 acquisition of 1-800 Packouts, LLC (Packouts) itself.
Specifically, the settlement agreement was made to resolve claims made under the indemnity clause of the purchase agreement for the 2022 acquisition of 1-800 Packouts, LLC. The company claimed losses due to alleged breaches of franchise-related representations and warranties by the former owner of Packouts. The settlement resulted in the company receiving $10,000,000, part of which was used to repurchase the former owner's membership interest.
Therefore, the provided FDD excerpts do not contain information about 1 800 Packouts acquiring any brand in March 2024. A prospective franchisee should ask 1 800 Packouts directly about any acquisitions made during that time.