What was the reported cash amount for 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 the 2025 FDD, the cash amount for 1 800 Packouts is listed as $5,966. This figure is part of a summary detailing the estimated fair values of assets acquired and liabilities assumed during the year ended December 31, 2022. This summary also includes figures for accounts receivable, contract assets, other assets, operating lease right-of-use asset, trade name, franchise agreements, goodwill, liabilities assumed, and the total purchase price.
For a prospective franchisee, this cash figure provides a snapshot of 1 800 Packouts's financial position at the time of its acquisition. While this number alone doesn't provide a comprehensive view of the company's current financial health, it offers some insight into the valuation of the company's assets during the acquisition process. Understanding the different types of assets, such as 'contract assets' and 'goodwill,' can help a franchisee appreciate the overall financial structure of 1 800 Packouts.
It's important to note that this data is from 2022, and the financial situation may have changed since then. A potential franchisee should review more current financial statements and conduct thorough due diligence to assess the present financial stability and performance of 1 800 Packouts. This includes looking at more recent balance sheets, income statements, and cash flow statements to get an up-to-date understanding of the company's financial status.
In summary, while the $5,966 cash amount is a historical data point, it's crucial to consider it within the broader context of the company's overall financial picture. Prospective franchisees should seek current financial information and expert advice to make informed decisions about investing in a 1 800 Packouts franchise.