What was the revenue for 1 800 Packouts for the year ending December 31, 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
certain liabilities arising out of the performance of their duties. The Company's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects any risk of loss to be remote. The Company also has an insurance policy for its directors and officers to insure them against liabilities arising from the performance of their duties in their positions with the Company or its subsidiaries.
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, 1 800 Packouts provides call center and other management services to another franchisor under common ownership. The company also incurs certain expenses on behalf of that related franchisor and bills them for costs incurred.
The amounts charged for these services during the year ending December 31, 2023, totaled $250,031. This amount is included in the revenues for that year. As of December 31, 2023, the accounts receivable due from this related party also amounted to $250,031.
This indicates that 1 800 Packouts derives a portion of its revenue from providing services to a related franchisor, and this revenue is recognized when the services are performed. A prospective franchisee should inquire about the stability and nature of this related-party revenue, as it could impact the overall financial performance of 1 800 Packouts.