What size facility does 1 800 Packouts expect franchisees to rent?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
but which includes freight delivery to your location.
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- We expect that you will either purchase or lease the real estate for the Facility. This estimate assumes that you will be renting a 5,000 – 20,000 square foot Facility and the approximate cost at $10/sq ft for the security deposit, utilities deposit, and initial months of rent. We expect most Facilities will be approximately this size, but we may approve smaller Facilities in our sole discretion. Your rent may differ based on market factors in your area. We do not lease or sell space to you. The estimates in this table include your pre-operations rent expenses together with estimates for rent during your initial period of operations.
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Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–26)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the company anticipates that franchisees will rent a facility between 5,000 and 20,000 square feet. The estimated cost for the security deposit, utilities deposit, and initial months of rent is based on an approximate cost of $10 per square foot. While 1 800 Packouts expects most facilities to be within this size range, they retain the discretion to approve smaller facilities. The FDD specifies that the facility must include permanent climate-controlled storage rooms, cleaning room(s), and an office.
The estimated initial investment for rent, security deposit, and utility deposits ranges from $5,500 to $18,000. This range reflects the variability in rental costs based on the size and location of the facility. Prospective franchisees should research local market conditions to determine realistic rental rates in their area. The FDD also notes that the franchisee's rent may differ based on market factors.
It is important to note that 1 800 Packouts does not lease or sell space to franchisees. The franchisee is responsible for securing their own location and negotiating lease terms. The estimates provided in the FDD include pre-operations rent expenses, as well as rent during the initial period of operations. The actual costs for leasehold improvements will depend on the location, the condition of the premises, economic factors, and the facility's size, with the premises potentially requiring retrofitting to conform to the specific needs of 1 800 Packouts's system.