What was the net loss for 1 800 Packouts as of December 31, 2021?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Revenues | $ | 26,026,524 | $ | 7,457,362 |
|---|---|---|---|---|
| Cost of revenues | _ | 5,463,228 | 2,490,615 | |
| Gross profit | _ | 20,563,296 | 4,966,747 | |
| Operating expenses: | ||||
| Selling, general and administrative | 18,837,743 | 8,259,143 | ||
| Depreciation and amortization | 10,597,574 | 2,548,873 | ||
| Total operating expenses | 29,435,317 | 10,808,016 | ||
| Loss from operations | _ | (8,872,021) | (5,841,269) | |
| Other income (expense): | ||||
| Interest expense | (3,821,499) | (647,029) | ||
| Earnings from unconsolidated subsidiary | - | 77,537 | ||
| Gain on sale of unconsolidated subsidiary | 1,025,637 | - | ||
| Other income (expense) | _ | (51,463) | (112,956) | |
| Total other expense, net | _ | (2,847,325) | (682,448) | |
| Loss before income taxes | (11,719,346) | (6,523,717) | ||
| Income tax benefit | _ | 1,280,676 | 374,421 | |
| Net loss | $ | (10,438 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the company experienced a net loss of $6,149,296 for the period from April 9, 2021 (inception) through December 31, 2021. This figure reflects the financial performance of 1 800 Packouts during its initial months of operation.
For a prospective franchisee, this information provides insight into the company's early financial challenges. Start-up costs and initial operational inefficiencies often contribute to early losses in a franchise system. It is important to consider this loss in the context of the company's overall financial strategy and growth trajectory.
It is also important to note that the company was acquired on January 31, 2022. The acquiring company may have different accounting methods that impact the overall financials. Reviewing subsequent financial statements and understanding the factors that contributed to the initial net loss is crucial for assessing the financial viability of a 1 800 Packouts franchise.