How much revenue did 1 800 Packouts recognize from 'other revenues' in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Rebates
The Company receives rebates from certain vendors used by franchisees. Vendor rebate revenue is recognized at the point-in- time the associated salesto vendors are recorded and the rebate is earned.
Other Revenues
Other revenues include fees generated by consulting services, monthly technology access fees and other miscellaneous fees allowable under the terms of the Franchise Agreements. Consulting and other fees are recognized as revenue once the consulting or other services have been performed, these services are short term in nature and provided on
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the company recognized $5,113,894 in revenue from 'other revenues' during the year 2023. This 'other revenues' category includes vendor rebates, fees from consulting services, monthly technology access fees, and other miscellaneous fees permitted under the franchise agreements. These consulting and other fees are recognized as revenue once the services are performed, typically on a short-term, month-to-month basis. Monthly technology access fees are recognized during the month the services are provided.
For a prospective 1 800 Packouts franchisee, understanding the composition of 'other revenues' is important as it reflects additional income streams beyond the primary services. These revenues can supplement income generated from core franchise operations. The consistent recognition of these revenues suggests a stable demand for these additional services and fees.
It is important for potential franchisees to inquire about the specific types of consulting services, the technology access fees, and other miscellaneous fees that contribute to this revenue stream. Understanding the details of these revenue components can help a franchisee forecast potential income and assess the demand for these services in their specific market. Additionally, franchisees should understand how vendor rebates are earned and distributed, as this can impact their overall profitability.