What revenues did 1 800 Packouts generate from royalties 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' 2025 Franchise Disclosure Document, the company generated $16,760,701 in revenue from royalties in 2024. This figure represents the income 1 800 Packouts receives from its franchisees based on a percentage of their gross sales. For a prospective franchisee, this indicates the scale of the royalty payments contributed by the entire franchise system to the franchisor.
Royalties are a primary revenue stream for franchisors like 1 800 Packouts, and this figure can be used to assess the financial health and stability of the franchise system. A substantial royalty income suggests a well-established and profitable network of franchisees. The FDD also shows that royalty revenues increased from $13,797,504 in 2023 to $16,760,701 in 2024, indicating growth in the 1 800 Packouts franchise system.
Understanding the royalty structure is crucial for potential franchisees. In 1 800 Packouts' case, the franchisee pays a monthly royalty fee equal to 7% of the monthly Gross Sales of the Franchised Business. Gross Sales includes all revenue of the Franchised Business, including all sales of products and services to customers, but excluding excise, sales and use taxes, gross receipts taxes or similar taxes if those taxes are separately stated when the customer is charged, and also excluding bona fide refunds actually paid to customers. This information helps a prospective franchisee understand the ongoing costs associated with operating a 1 800 Packouts franchise.