How much revenue did 1 800 Packouts recognize from 'Other Revenues' in 2024?
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 $6,665,981 in revenue from 'Other Revenues' during the year 2024. This is an increase compared to 2023, when 'Other Revenues' amounted to $5,113,894.
'Other Revenues' for 1 800 Packouts include vendor rebates, fees generated by consulting services, monthly technology access fees, and other miscellaneous fees allowable under the terms of the Franchise Agreements. The consulting and other fees are recognized as revenue once the consulting or other services have been performed. These services are short term and provided on a month-to-month basis. Monthly technology access fees are recognized during the month that services are performed.
For a prospective franchisee, understanding the composition and recognition of 'Other Revenues' is important as it reflects additional income streams beyond the typical royalties, franchise fees, and sales. The growth in 'Other Revenues' from 2023 to 2024 suggests an increasing reliance on these supplementary services and fees, which could be a positive indicator of the brand's evolving service offerings and revenue diversification.