What was the total benefit (provision) for income taxes for 1 800 Packouts in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
ues. The Company made payments of management fees of $570,389 and $1,613,745 for services rendered during the years ended December 31, 2023 and 2022, respectively.
The Company provides call center and other management services to another franchisor that is under common ownership. Additionally, the Company incurs certain expenses on behalf of that related franchisor and bills them for costs incurred. Amounts charged for services performe
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the total benefit (provision) for income taxes in 2023 was a negative amount, specifically $(765,698). This figure represents the net effect of current and deferred income taxes for that year. It indicates that 1 800 Packouts had a loss before income taxes, resulting in an income tax benefit.
This number is derived from the combination of both current and deferred tax components. The current portion includes federal taxes of $(262,480) and state taxes of $(78,963). The deferred portion includes federal taxes of $(292,567) and state taxes of $(131,688). The sum of these components results in the total benefit (provision) for income taxes of $(765,698).
For a prospective franchisee, this information provides insight into the company's tax situation and overall profitability during 2023. A negative income tax benefit suggests that the company experienced losses during that period. It is important to consider this figure in conjunction with other financial data to assess the overall financial health and stability of 1 800 Packouts. Franchisees should investigate the reasons behind the loss and understand how the company plans to improve its financial performance in subsequent years.