What was the reported value of NOL carryforwards for 1 800 Packouts in 2022?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
sor and bills them for costs incurred. Amounts charged for services performed during the year ended December 31, 2022 and for the period from inception (April 9, 2021) through December 31, 2021 amounted to $86,101 and $0, respectively, and are included in revenues. As of December 31, 2022 and 2021, accounts receivable due from this related party were $86,101 and $0, respectively.
| | _ | 2022 | 2021 | |------------
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the value of NOL (Net Operating Loss) carryforwards reported for 2022 was $290,452. This figure represents the amount of net operating losses that 1 800 Packouts can use to reduce its future taxable income.
NOL carryforwards can be a valuable asset for a company like 1 800 Packouts, as they can decrease future tax liabilities and improve cash flow. The availability and utilization of these carryforwards are subject to certain limitations and tax regulations.
For a prospective franchisee, understanding the financial health and tax strategies of the franchisor is crucial. While this specific figure relates to the franchisor's overall financial position, it provides insight into how 1 800 Packouts manages its finances and tax obligations, which can indirectly affect the support and resources available to franchisees.