What are the specific components included in 1 800 Packouts' 'Liabilities and Members' Equity'?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Total liabilities | 82,249,343 | 77,113,904 |
|---|---|---|
| Commitments and contingencies (Notes 4, 5 & 6) | ||
| Members' equity | 47,328,038 | 61,292,873 |
| Total liabilities and members' equity | $ 129,577,381 | $ 138,406,777 |
| (1) | Members' Equity | |||
|---|---|---|---|---|
| Balance as of January 1, 2023 | $ | 77,059,237 | ||
| Equity-based compensation | 201,589 | |||
| Net | (15,967,953) | |||
| loss | ||||
| Balance as of December 31, 2023 | 61,292,873 | |||
| Equity-based compensation | 163,300 | |||
| Member units issued for acquisition (Note 2) | 3,000,000 | |||
| Repurchase of member units | (4,878,129) | |||
| Net | (12,250,006) | |||
| loss | ||||
| Balance as of December 31, 2024 | $ | 47,328,038 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the company's total liabilities were $82,249,343 in 2024 and $77,113,904 in 2023. The members' equity totaled $47,328,038 in 2024, a decrease from $61,292,873 in 2023. The total liabilities and members' equity combined amounted to $129,577,381 in 2024 and $138,406,777 in 2023.
Further details within members' equity show a balance of $77,059,237 as of January 1, 2023. This was affected by equity-based compensation of $201,589 and a net loss of $15,967,953, resulting in a balance of $61,292,873 as of December 31, 2023. Additional factors in 2024 included equity-based compensation of $163,300, member units issued for acquisition valued at $3,000,000, and a repurchase of member units totaling $4,878,129, along with a net loss of $12,250,006, bringing the balance to $47,328,038 as of December 31, 2024.
For a prospective franchisee, understanding these figures provides insight into the financial structure and performance of 1 800 Packouts. The decrease in members' equity from 2023 to 2024, influenced by net losses and the repurchase of member units, could signal areas of financial challenge or strategic decisions within the company. Reviewing these trends in liabilities and equity can help a franchisee assess the financial stability and potential risks associated with investing in a 1 800 Packouts franchise.
It is important to note that the FDD also mentions commitments and contingencies in notes 4, 5, & 6, but does not elaborate on what these entail. A potential franchisee should carefully review these notes or seek clarification from 1 800 Packouts to fully understand the nature and potential impact of these commitments and contingencies on the overall financial health of the company.