What was the total amount of depreciation and amortization expenses for 1 800 Packouts in 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Revenues | $47,493,372 | $38,119,222 |
| Cost of revenues | 14,071,864 | 10,711,574 |
| Gross profit | 33,421,508 | 27,407,648 |
| Operating expenses: | ||
| Selling, general, and administrative | 28,732,110 | 24,077,839 |
| Depreciation and amortization | 11,953,138 | 12,782,735 |
| Total operating expenses | ||
| 40,685,248 | 36,860,574 | |
| Loss from operations | (7,263,740) | (9,452,926) |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the total depreciation and amortization expenses for the year 2024 were $11,953,138. This figure reflects the reduction in value of 1 800 Packouts' tangible and intangible assets over the course of the year. These expenses are a standard accounting practice to allocate the cost of assets over their useful lives.
For a prospective 1 800 Packouts franchisee, understanding depreciation and amortization is crucial for assessing the financial health and profitability of the franchise. While these are non-cash expenses, they impact the company's reported profit and loss. Higher depreciation and amortization expenses can reduce taxable income, potentially lowering income tax obligations.
It's important to note that amortization expense resulting from goodwill and intangible assets was $11,662,770 for the year ended December 31, 2024. This indicates that a significant portion of the total depreciation and amortization expenses is related to intangible assets acquired through business acquisitions, such as the acquisition of 1-800-Packouts, LLC (Packouts) in 2022. Franchisees should consider these factors when evaluating the long-term financial performance and stability of 1 800 Packouts.