What was the total current liability for 1 800 Packouts in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) | 2024 | 2023 | |
|---|---|---|---|
| Liabilities and Members' Equity | |||
| Current liabilities: | |||
| Accounts payable | $ | 1,515,669 | $ 713,523 |
| Accrued expenses | 2,383,578 | 2,656,030 | |
| Current | 3,227,336 | 2,517,756 | |
| portion | |||
| of | |||
| contract | |||
| liabilities | |||
| Current portion of operating lease liabilities | 360,394 | 256,163 | |
| Revolving credit facility | 1,100,000 | - | |
| Current portion of long-term debt, net of debt issuance costs | 206,519 | 851,000 | |
| Total current liabilities | 8,793,496 | 6,994,472 |
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 current liabilities for the company in 2023 were $6,994,472. This figure represents the sum of all obligations due within one year, including accounts payable, accrued expenses, the current portion of contract liabilities, the current portion of operating lease liabilities, and the current portion of long-term debt.
For a prospective franchisee, understanding the franchisor's financial liabilities is crucial. A high level of current liabilities relative to current assets could indicate potential financial strain on the company. This could impact 1 800 Packouts's ability to support its franchisees, invest in system improvements, or maintain consistent service levels.
It is important to note that current liabilities are just one aspect of a company's overall financial health. A thorough review of the entire financial statement, including assets, long-term liabilities, and equity, is necessary to gain a comprehensive understanding. Additionally, comparing these figures to previous years and industry benchmarks can provide valuable context.
Prospective franchisees should consider consulting with a financial advisor to analyze 1 800 Packouts's financial statements and assess the potential risks and opportunities associated with investing in the franchise. Understanding the franchisor's financial stability is a key step in making an informed decision.