What was the net loss for 1 800 Packouts in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
----|--------------------| | Cost of revenues | | 10,001,056 | 5,463,228 | | Gross profit | | 24,596,601 | 20,563,296 | | Operating expenses: | | | | | Selling, general and administrative | | 20,522,378 | 18,837,743 | | Depreciation and amortization | | 11,307,800 | 10,597,574 | | Total operating expenses | _ | 31,830,178 | 2
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the net loss for the year ended December 31, 2023, was approximately $13,710,570. This figure represents the overall loss incurred by 1 800 Packouts during its operations for that fiscal year. It is important to note that this loss is before adjustments made to reconcile it to net cash used in operating activities.
For a prospective franchisee, this net loss figure provides insight into the financial performance of 1 800 Packouts. While a net loss doesn't inherently indicate a poor investment, it does warrant further investigation. Franchisees should consider the factors contributing to the loss, such as investments in growth, one-time expenses, or market conditions. Understanding the reasons behind the loss can help a franchisee assess the potential for future profitability and the overall financial stability of the 1 800 Packouts franchise system.
It is also useful to compare this loss to the net loss from the previous year, which was approximately $10,438,670. The increase in net loss from 2022 to 2023 could signal potential challenges or strategic shifts within the company. A potential franchisee should discuss these figures with the franchisor to gain a clearer understanding of the company's financial trajectory and future plans.