What was the reported operating lease right-of-use assets 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,
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the reported operating lease right-of-use asset is $86,718. This figure represents the value of the company's right to use leased assets, such as property or equipment, for the duration of the lease term. It is an asset on the company's balance sheet, reflecting the economic benefit 1 800 Packouts expects to receive from using the leased assets.
For a prospective franchisee, understanding the operating lease right-of-use asset is crucial because it reflects the financial obligations 1 800 Packouts has undertaken through its leasing activities. This figure, along with the corresponding lease liabilities, provides insight into the company's financial leverage and its commitments to future lease payments. A higher value may indicate that 1 800 Packouts relies heavily on leased assets to conduct its operations, which could impact its financial flexibility.
It's important to note that this figure is a snapshot in time and can change due to various factors, such as new leases, lease modifications, or changes in accounting standards. Franchisees should consider this information in conjunction with other financial data and seek professional advice to fully understand the implications of 1 800 Packouts's leasing activities on its overall financial health.