What was the total value of intangible assets for 1 800 Packouts before accumulated amortization?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
management. The excess of the purchase price over the fair values of assets acquired and liabilities assumed was recorded as goodwill. The value of goodwill recognized in connection with the transactions can be attributed to a number of business factors including, but not limited to, the ability of the Company to grow given the additional capital and strategic expertise brought to the Company by the new ownership gro
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the company's total intangible assets before accumulated amortization as of December 31, 2022, and December 31, 2021, were $131,167,748 and $75,441,091, respectively. These figures represent the combined value of assets like trade names, franchise agreements, and goodwill before accounting for any reduction in value due to amortization.
For a prospective 1 800 Packouts franchisee, understanding the value of these intangible assets is crucial because they reflect the brand's market recognition and established franchise network. A higher valuation suggests a stronger brand presence and potentially greater customer loyalty. The trade name is valued at $27,550,000, and franchise agreements are valued at $30,900,000. Goodwill, which represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination, is valued at $72,717,748.
It's important to note that these values are based on estimates and accounting methods, as detailed elsewhere in the FDD. Amortization, which is the systematic reduction of the intangible assets' value over their useful lives, is not factored into these totals. Reviewing the accumulated amortization alongside these figures provides a more complete picture of the net value of these assets over time. The accumulated amortization as of December 31, 2022, was ($13,111,503) and as of December 31, 2021, was ($2,543,033).
Prospective franchisees should consider these intangible asset values as indicators of the overall financial health and brand strength of 1 800 Packouts. However, it is advisable to consult with a financial advisor to fully understand the implications of these figures and how they might impact the franchisee's investment and potential returns.