What was the revenue generated by 1 800 Packouts from franchise fees in 2024?
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 company generated $5,798,078 in revenue from franchise fees during the year 2024. This indicates the revenue 1 800 Packouts earns from the initial fees franchisees pay to join the system. This figure does not include ongoing royalties or other fees.
For a prospective franchisee, this number provides insight into the franchisor's financial health and growth trajectory. A substantial increase in franchise fee revenue could suggest rapid expansion and a strong demand for 1 800 Packouts franchises. Conversely, a decline might signal challenges in attracting new franchisees.
It's important to note that this revenue recognition may be spread over the term of the franchise agreement. The FDD states that initial franchise fee revenue is partially recognized upon substantial completion of startup services, with the remainder recognized over the term of the franchise agreement. This accounting practice is common in franchising, as it aligns revenue recognition with the ongoing support and brand benefits franchisees receive.