table_specific

What was the net loss for 1 800 Packouts in the earlier of the two years presented in this table?

1_800_Packouts Franchise · 2025 FDD

Answer 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' 2025 Franchise Disclosure Document, the net loss for the year ended December 31, 2022, was $(10,438,670). This figure represents the company's financial performance during that specific period, indicating that 1 800 Packouts' expenses and losses exceeded its revenues by this amount. This information is crucial for potential franchisees to understand the financial health and stability of the company.

It is important to note that the net loss is a key indicator of a company's profitability, or lack thereof, during a specific period. For a prospective franchisee, a significant net loss could raise concerns about the franchisor's ability to support its franchisees, invest in the brand, and maintain its competitive position in the market. However, it is also important to consider the context of the net loss, such as the company's stage of development, investment in growth initiatives, and overall economic conditions.

While a net loss can be a cause for concern, it is essential to evaluate it in conjunction with other financial metrics and qualitative factors. For instance, a company might be experiencing a net loss due to heavy investments in expansion or marketing, which could ultimately lead to future profitability. Additionally, a franchisee should investigate the reasons behind the net loss and assess whether the company has a plan to address the underlying issues and improve its financial performance. A potential franchisee should also consider consulting with a financial advisor to fully understand the implications of the net loss and its potential impact on their investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.