What is the significance of the company-controlled 1 800 Packouts franchise data in relation to a new franchisee's potential performance?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
,](#page-54-0) for example, by providing information about possible performance at a particular location or under particular circumstances.
Company-Controlled Franchise Data
The following financial data represents the performance of the franchise which operates as a companycontrolled franchise. This company-controlled franchise provides training services and is controlled by us for use in pilot programs and development of operations and franchise system standards. It was in operation throughout all of 2024. It presents such data in the form of a Profit-Loss Report prepared on an accrual basis. This reflects its performance as an established outlet, and does not show expenses related to rampup, startup, or similar early-stage operations. It likewise reflects performance related to a territory which has unique location-specific aspects in the San Diego area, which may not all be replicated or representative of your operation in your territory.
Profit and Loss 1-800 Packouts San Diego
January-December, 2024
| Distribution account | Total |
|---|---|
| Income | |
| Cleaning | 3,435.57 |
| Packout | 688,326.08 |
| Storage Onsite | 294,661.18 |
| Storage | 730,916.49 |
| Takeback | 378,509.56 |
| Specialty | 350,554.33 |
| Total for Income | $2,446,403.21 |
| Cost of Goods Sold | |
| Breakage | 13,271.17 |
| Job Materials Purchased | 47,862.31 |
| Other Job Related Costs | 1,687.57 |
| Subcontractors Expense | 61,188.61 |
| Tech Payroll Expenses | 17.71 |
| Taxes |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–58)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the financial data from the company-controlled franchise is provided to give prospective franchisees an idea of potential financial performance. However, 1 800 Packouts emphasizes that this data reflects the performance of an established outlet used for training, pilot programs, and developing system standards. As such, it does not include expenses related to ramp-up, startup, or other early-stage operations that a new franchisee would typically encounter. Therefore, the financial results of the company-controlled franchise may not be representative of what a new franchisee can expect in their initial years of operation. The FDD also states, "Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll sell as much."
Furthermore, the 1 800 Packouts FDD highlights that the company-controlled franchise operates in a territory with unique location-specific aspects in the San Diego area. These specific conditions may not be replicable or representative of the territory a new franchisee will operate in. This means that the revenue and expenses of the company-controlled franchise could be significantly different from what a new franchisee experiences due to variations in local market conditions, customer demographics, and competition.
Given these factors, prospective 1 800 Packouts franchisees should exercise caution when interpreting the financial data of the company-controlled franchise. While it can offer insights into the potential of the business model, it is essential to consider the differences between an established, company-controlled operation and a new, independently owned franchise. New franchisees should focus on understanding the factors that drive performance in their specific territory and develop a realistic financial plan that accounts for startup costs and local market conditions. They should also request written substantiation for the financial performance representation.
It is also important to note that, other than the financial performance representation provided, 1 800 Packouts does not make any other financial performance representations, nor do they authorize employees or representatives to do so, either orally or in writing. If a prospective franchisee receives any other financial performance information or projections of future income, they are instructed to report it to 1 800 Packouts's management, the Federal Trade Commission, and the appropriate state regulatory agencies.