What was the total members' equity for 1 800 Packouts in the later reported year?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
------|--------------------------| | 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 Depreciation and amortization | 28,732,110 11,953,138 | 24,077,839 12,782,735 | | Total operating expenses | 40,685,248 | 36,860,574 | | Loss from operations | (7,263,740) | (9,452,926) | | Other income (expense): Interest expense Other income (expense) | (5,462,474) 43,809 | (5,530,375) (218,954) | | Total other expense, net | (5,418,665) | (5,749,329) | | Loss
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 members' equity as of December 31, 2024, was $47,328,038. This figure represents the ownership stake of the members in the company after deducting all liabilities from the total assets. Members' equity is a key indicator of the financial health and stability of 1 800 Packouts. A higher members' equity generally suggests a stronger financial position.
The members' equity is influenced by several factors, including net income or loss, equity-based compensation, issuance of member units for acquisitions, and repurchase of member units. For instance, in 2024, 1 800 Packouts experienced a net loss of $12,250,006, which negatively impacted the members' equity. Conversely, equity-based compensation and the issuance of member units for acquisitions contributed positively to the members' equity, though not enough to offset the loss.
Prospective franchisees should consider the trend in members' equity over time. In this case, the members' equity decreased from $61,292,873 as of December 31, 2023, to $47,328,038 as of December 31, 2024. This decrease may warrant further investigation to understand the underlying reasons and potential implications for the financial stability of 1 800 Packouts. Understanding these factors can help a potential franchisee assess the financial risks and opportunities associated with investing in a 1 800 Packouts franchise.