What was the operating lease cost for 1 800 Packouts in 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
in the leases were not known.The weighted average incremental borrowing rate used was 5.77%.
The following table reconciles the undi
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the operating lease cost for the company in 2024 was $425,914. This figure reflects the total cost associated with leasing office space under operating lease arrangements for that year.
Operating leases are a common business practice where a company rents property or equipment instead of purchasing them. This allows 1 800 Packouts to use assets without incurring the large upfront costs of buying them outright. The lease costs typically cover the rental payments for the use of the office space.
For a prospective franchisee, understanding the operating lease costs of 1 800 Packouts is important for assessing the overall financial health and stability of the company. While this figure represents the company's expenses, it does not directly translate to the costs a franchisee would incur, as franchisees are responsible for securing and paying for their own business locations.