What was the total revenue generated by 1 800 Packouts from advertising services in 2023?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| EXHIBIT B | 2024 | 2023 | |
|---|---|---|---|
| Royalties | $16,760,701 | $13,797,504 | |
| Advertising services | 8,154,242 | 7,184,067 | |
| Other revenues | 6,665,981 | 5,113,894 | |
| Franchise fees | 5,798,078 | 5,023,575 | |
| Equipment and product sales | 3,878,525 | 2,414,926 | |
| Call center services | 3,018,653 | 2,799,481 | |
| Vendor rebates | 2,782,697 | 1,785,775 | |
| Installation sales | 434,495 $47,493,372 | $38,119,222 | - |
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 revenue from advertising services in 2023 was $7,184,067. This revenue is generated from a fee of up to 3% of franchisees' gross receipts, which 1 800 Packouts charges to cover marketing costs that benefit multiple franchises. These funds are used to promote the 1 800 Packouts brand.
For a prospective franchisee, this means that 3% of their gross sales will be allocated to the national advertising fund. It is important to note that marketing revenues and expenses are recognized in equal amounts as marketing expenses are incurred. Any collected but unspent amounts at the end of the year are accrued as a liability on the consolidated balance sheets until the related expense has been incurred.
This advertising revenue is separate from other revenue streams for 1 800 Packouts, such as royalties, franchise fees, equipment and product sales, call center services, vendor rebates, and other revenues like consulting and technology access fees. Understanding the breakdown of these revenue streams can give a franchisee a clearer picture of the financial structure of the 1 800 Packouts franchise system.