What was the total revenue from royalties for 1 800 Packouts in 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
Rebates
The Company receives rebates from certain vendors used by franchisees. Vendor rebate revenue is recognized at the point-in- time the associated salesto vendors are recorded and the rebate is earned.
Other Revenues
Other revenues include fees generated by consulting services, monthly technology access fees and other miscellaneous fees allowable under the terms of the Franchise Agreements. Consulting and other fees are recognized as revenue once the consulting or other services have been performed, these services are short term in nature and provided on
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 royalties in 2024 was $16,760,701. This indicates the income 1 800 Packouts earned from its franchisees based on a percentage of their sales. For a prospective franchisee, this figure is important because it demonstrates the franchisor's revenue stream and the overall financial health of the franchise system. Royalties are a standard component of most franchise agreements, and this number provides insight into how much franchisees collectively contributed to 1 800 Packouts's earnings.
For a potential franchisee, understanding the royalty revenue is crucial for several reasons. First, it reflects the strength and stability of the 1 800 Packouts brand and business model. Higher royalty revenues typically suggest a well-performing franchise system with successful franchisees. Second, it can be an indicator of the level of support and services that 1 800 Packouts provides to its franchisees, as these services are often funded by royalty payments. Finally, it's essential to compare this figure with previous years and with other franchises in the same industry to assess 1 800 Packouts's competitive position and growth trajectory.
It is also useful to compare the royalty revenue with other revenue streams, such as advertising services ($8,154,242), other revenues ($6,665,981), and franchise fees ($5,798,078), to understand the overall revenue composition of 1 800 Packouts. This broader view helps potential franchisees evaluate the sustainability and diversification of the franchisor's income sources. A healthy mix of revenue streams can reduce the risk associated with relying too heavily on royalties alone. Therefore, a prospective franchisee should analyze these figures in detail to make an informed investment decision.