What were the total liabilities for 1 800 Packouts in the earlier reported year?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
expressing an opinion on the\neffectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Tanner LLC
April 30, 2023
| As of December 3: | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Assets | ||||
| Current assets: | ||||
| Cash | $ | 3,760,121 | $ | 1,614,389 |
| Restricted cash | 543,616 | 439,024 | ||
| Accounts receivable, net of an allowance for doubtful accounts | ||||
| of $58,660 and $32,710, respectively | 2,360,599 | 907,535 | ||
| Current portion of contract assets | 1,350,919 | 169,463 | ||
| Prepaid and other current assets | 792,682 | 33,886 | ||
| Total current assets | 8,807,937 | 3,164,297 | ||
| Goodwill, net | 63,918,327 | 39,262,725 | ||
| Intangible assets, net | 54,137,918 | 33,635,333 | ||
| Investment in unconsolidated subsidiary | - | 597,537 | ||
| Contract assets, net of current portion | 9,616,933 | 379,746 | ||
| Operating lease right-of-use asset | 1,153,787 | - | ||
| Other assets | _ | 703,934 | 293,037 | |
| Total assets | $ | 138,338,836 | $ | 77,332,675 |
| Liabilities and Members' Equity | ||||
| Current liabilities: | ||||
| Accounts payable | 602,708 | $ | 333,610 | |
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 liabilities as of December 31, 2021, were $35,924,290. This figure provides a snapshot of the company's financial obligations at that point in time.. This includes both current liabilities, such as accounts payable and accrued expenses, and long-term liabilities like debt and deferred income taxes.
For a prospective franchisee, understanding the franchisor's liabilities is crucial as it provides insight into the financial stability and health of 1 800 Packouts. A high level of liabilities compared to assets could indicate financial risk, while a manageable level suggests a stable financial foundation. Reviewing these figures in comparison to previous years and industry benchmarks can offer a more comprehensive understanding.
It's important to note that these figures are based on a specific date and can change over time due to various factors, including business operations, investments, and market conditions. Therefore, a prospective franchisee should also consider the trend of liabilities over several years and any significant changes in the company's financial structure. Additionally, it is advisable to consult with a financial advisor to fully understand the implications of these liabilities for the franchise opportunity.