What was the revenue generated by 1 800 Packouts from call center services in 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Rebates
The Company receives rebates from certain vendors used by franchisees. Vendor rebate revenue is recognized at the point-in- time the associated salesto vendors are recorded and the rebate is earned.
Other Revenues
Other revenues include fees generated by consulting services, monthly technology access fees and other miscellaneous fees allowable under the terms of the Franchise Agreements. Consulting and other fees are recognized as revenue once the consulting or other services have been performed, these services are short term in nature and provided on
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 recognized from call center services in 2024 was $3,018,653. This revenue is generated from sales and marketing support services that 1 800 Packouts provides to its franchisees, specifically through the operation of a call center. The fees for these services are structured either as a fixed monthly fee or as a variable fee, depending on the franchisee's monthly usage of the call center.
For a prospective franchisee, this indicates that a portion of their fees will contribute to the call center services provided by 1 800 Packouts. The call center supports inbound customer and marketing-related calls, which can be a valuable resource for franchisees in managing customer inquiries and marketing efforts. The revenue generated from these services demonstrates the scale and potential importance of the call center operations to the overall franchise system.
It's important to note that the revenue from call center services is recognized during the month the services are performed. This revenue stream is separate from other revenue sources such as royalties, franchise fees, equipment and product sales, and advertising services, each of which has its own recognition criteria and associated amounts. Understanding the different revenue streams and their respective amounts can provide a clearer picture of the financial structure of the 1 800 Packouts franchise system.