table_specific

What was the reported value of intangible assets for 1 800 Packouts in 2023?

1_800_Packouts Franchise · 2025 FDD

Answer from 2025 FDD Document

opinion on the effectiveness of the Company'sinternal 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.

April 23, 2025

(1) 2024 2023
Assets
Current assets:
Cash $ 3,690,691 $ 1,455,349
Restricted cash - 840,143
Accounts receivable, net of an allowance for credit losses
of $74,296 and $105,953, respectively 6,102,611 3,565,178
Other 820,000 -
current
receivable
Current 1,797,429 1,382,859
portion
of
contract
assets
Prepaid and other current assets 1,803,912 1,537,556
Total current assets 14,214,643 8,781,085
Goodwill, net 52,556,496 66,184,756
Intangible assets, net 45,678,810 50,358,496
Contract assets, net of current portion 13,317,603 10,981,453
Operating lease right-of-use assets 1,603,081 1,272,436
Other assets 2,206,748 828,551
Total assets $ 129,577,381 $ 138,406,777
Liabilities and Members' Equity
Current liabilities:
Accounts payable $ 1,515,669 $ 713,523
Accrued expenses 2,383,578 2,656,030
Current 3,227,336 2,517,756
portion
of
contract
liabilities
Current portion of operating lease liabilities 360,394 256,163
Revolving credit facility 1,100,000 -
Current portion of long-term debt, net of debt issuance costs 206,519 851,000
Total current liabilities 8,793,496 6,994,472
Contract 20,994,540 17,393,479
liabilities,
net
of
current
portion
Operating lease liabilities, net of current portion 1,321,919 1,070,182
Long-term debt, net of curre

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, 2023, was $50,358,496. This figure represents the estimated value of assets that are not physical, such as brand recognition, trademarks, and customer relationships, after accounting for amortization. These intangible assets contribute to the overall value and financial standing of 1 800 Packouts.

For a prospective franchisee, understanding the value and composition of intangible assets is crucial. These assets often reflect the brand's market position and competitive advantage. A significant portion of the purchase price of a franchise may be allocated to intangible assets, and their ongoing amortization can impact the franchisee's profitability. Therefore, it's important to assess how these assets are being managed and protected by 1 800 Packouts.

Furthermore, the FDD also indicates that amortization expense resulting from goodwill and intangible assets was $12,639,099 for the year ended December 31, 2023. This expense reflects the systematic reduction in the value of these assets over their useful lives. Monitoring these figures can provide insights into the long-term financial planning and sustainability of 1 800 Packouts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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