What was the revenue generated by 1 800 Packouts from advertising services in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| EXHIBIT B | 2024 | 2023 | |
|---|---|---|---|
| Royalties | $16,760,701 | $13,797,504 | |
| Advertising services | 8,154,242 | 7,184,067 | |
| Other revenues | 6,665,981 | 5,113,894 | |
| Franchise fees | 5,798,078 | 5,023,575 | |
| Equipment and product sales | 3,878,525 | 2,414,926 | |
| Call center services | 3,018,653 | 2,799,481 | |
| Vendor rebates | 2,782,697 | 1,785,775 | |
| Installation sales | 434,495 $47,493,372 | $38,119,222 | - |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the revenue generated from advertising services in 2023 was $7,184,067. This figure represents the income 1 800 Packouts received from advertising-related activities during that year.
This revenue is likely derived from the marketing fees that 1 800 Packouts charges its franchisees. The FDD states that 1 800 Packouts may charge franchisees up to 3% of their gross receipts for a national branding fund, which is used for marketing costs that benefit multiple franchises. The revenue and expenses related to these marketing activities are recognized in equal amounts as the expenses are incurred.
For a prospective franchisee, this indicates the scale of 1 800 Packouts's advertising and marketing efforts. It also highlights the importance of the 3% marketing fee, as this fee contributes significantly to the overall advertising revenue. Understanding how these funds are used and the impact of the advertising on franchise performance is a crucial aspect of evaluating the 1 800 Packouts franchise opportunity.