What is the net amount of intangible assets for 1 800 Packouts as of December 3, 2021?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
expressing an opinion on the\neffectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Tanner LLC
April 30, 2023
| As of December 3: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Assets |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the net amount of intangible assets as of December 3, 2021, was $33,635,333. This figure represents the value of assets that are not physical, such as trademarks, franchise agreements, and other intellectual property, after accounting for amortization.
For a prospective 1 800 Packouts franchisee, understanding the value and composition of these intangible assets is crucial. These assets often contribute significantly to brand recognition and market position. The value of intangible assets like trade names and franchise agreements are calculated using methods like discounted cash flow, with useful lives estimated between 13 to 15 years.
The valuation of these intangible assets impacts the overall financial health and balance sheet of 1 800 Packouts. Monitoring changes in these values over time can provide insights into the stability and growth potential of the franchise system. Additionally, any significant changes in goodwill, as noted in the document, can reflect adjustments in the perceived value of acquisitions and the overall business.