What was the reported amount for other assets of 1 800 Packouts?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
chase agreement included payment of rollover interest of $2,000,000 wherein the former owner was granted an ownership interest in the Company, which was included in the total consideration paid for the acquisition.
In relation to these acquisitions, the Company elected to early adopt Accounting Standards Update 2021-08, Business Combinations (ASU 2021-08). ASU 2021-08 allows a Company to recognize and measure contract assets and contract liabilities in accordance with ASC 606, Revenue from Contracts with Customers. Accordingly, the contract assets and contrac
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, during the acquisition of 1-800 Packouts, LLC in 2022, the value of other assets was reported as $49,810. This figure is part of a summary detailing the estimated fair values of assets acquired and liabilities assumed during the acquisition. This valuation reflects the company's assessment of the worth of assets beyond cash, accounts receivable, contract assets, and operating lease right-of-use assets at the time of acquisition.
For a prospective franchisee, understanding the valuation of 'other assets' during an acquisition can provide insight into the financial structuring of 1 800 Packouts and its parent company. While 'other assets' may not directly impact day-to-day operations, they contribute to the overall financial health and stability of the company. Knowing the types of assets included in this category can help a franchisee assess the long-term investment potential and risk associated with the franchise.
It's important to note that the reported $49,810 represents the value of other assets specifically at the time of the 2022 acquisition. The current value of these assets may have changed due to various factors such as depreciation, market fluctuations, or subsequent business activities. Franchisees should consider this historical data as one component of their broader due diligence, and inquire about the current valuation and composition of 'other assets' to gain a more up-to-date financial picture.