What was the reported value of intangible assets for 1 800 Packouts in 2021?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
expressing an opinion on the\neffectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Tanner LLC
April 30, 2023
| As of December 3: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Assets |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the net value of intangible assets as of December 31, 2021, was $33,635,333. This figure represents the estimated value of assets like trade names and franchise agreements, which are not physical but contribute to the company's long-term value. These intangible assets are subject to amortization over their estimated useful lives, which range from 13 to 15 years for franchise agreements and 15 years for trade names.
For a prospective 1 800 Packouts franchisee, understanding the value and amortization of intangible assets is crucial. These assets, such as the brand name and established franchise agreements, are key components of the franchise system's overall value. The amortization expense, which was $2,543,033 for the period from inception through December 31, 2021, reflects the gradual reduction in the value of these assets over time.
It's important to note that the value of intangible assets can significantly impact 1 800 Packouts's financial performance and balance sheet. Goodwill, which represents the excess of the purchase price over the fair value of acquired assets, was valued at $39,262,725 as of December 31, 2021. Both goodwill and intangible assets are critical when assessing the overall financial health and stability of 1 800 Packouts. Franchisees should consider these figures as part of their due diligence, as they reflect the underlying value and long-term potential of the franchise system.