What was the revenue generated by 1 800 Packouts from installation sales 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 the 2025 FDD, 1 800 Packouts generated $434,495 in revenue from installation sales during 2024. This figure represents the income 1 800 Packouts earned specifically from the installation of showers and baths by company-operated franchises. These installations are typically completed within a short timeframe of 1-2 days, and revenue is recognized once the installation is finished and accepted by the customer.
For a prospective franchisee, this indicates the potential revenue stream from installation services, assuming they operate a company-owned franchise. It's important to note that this revenue is separate from other income sources such as royalties, advertising services, franchise fees, equipment and product sales, call center services, and vendor rebates. Understanding the contribution of installation sales to the overall revenue can help franchisees assess the importance of offering and efficiently managing these services.
It is also worth noting that the revenue from installation sales is significantly lower than other revenue streams, such as royalties ($16,760,701) and advertising services ($8,154,242). This suggests that while installation sales contribute to the overall revenue, they may not be the primary driver of income for 1 800 Packouts. A franchisee should consider this in their business planning and focus on optimizing the more significant revenue streams.
Prospective franchisees should investigate further to understand the costs associated with providing installation services, the demand for these services in their specific market, and the profitability of installation sales after accounting for labor, materials, and other expenses. This will enable them to make an informed decision about the extent to which they should focus on offering and promoting installation services as part of their 1 800 Packouts franchise.