What is the trend in goodwill, net, for 1 800 Packouts over the reported periods?
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 | 79 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, the goodwill, net, has fluctuated over the reported periods. As of December 31, 2021, the goodwill, net, was $39,262,725. By December 31, 2022, it increased to $63,918,327. However, in 2023, the goodwill, net, increased further to $66,184,756. The most recent data shows a decrease in 2024 to $52,556,496.
This trend indicates that the value of 1 800 Packouts's goodwill has varied, potentially influenced by acquisitions, settlements, and other financial activities. For a prospective franchisee, this suggests the importance of understanding the factors that affect goodwill and how they might impact the overall financial health and valuation of the franchise.
It is important to note that goodwill is an intangible asset that represents the value of a company's brand name, customer relationships, intellectual property, and other factors that contribute to its earning potential. Fluctuations in goodwill can be due to various reasons, including acquisitions, changes in brand reputation, or changes in the competitive landscape. A prospective franchisee should inquire about the reasons behind these fluctuations to better assess the stability and long-term prospects of the 1 800 Packouts franchise.