What was the value of 1 800 Packouts' operating lease right-of-use assets in 2024?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
opinion on the effectiveness of the Company'sinternal 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.
April 23, 2025
| (1) | 2024 | 2023 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | $ | 3,690,691 | $ 1,455,349 |
| Restricted cash | - | 840,143 | |
| Accounts receivable, net of an allowance for credit losses | |||
| of $74,296 and $105,953, respectively | 6,102,611 | 3,565,178 | |
| Other | 820,000 | - | |
| current | |||
| receivable | |||
| Current | 1,797,429 | 1,382,859 | |
| portion | |||
| of | |||
| contract | |||
| assets | |||
| Prepaid and other current assets | 1,803,912 | 1,537,556 | |
| Total current assets | 14,214,643 | 8,781,085 | |
| Goodwill, net | 52,556,496 | 66,184,756 | |
| Intangible assets, net | 45,678,810 | 50,358,496 | |
| Contract assets, net of current portion | 13,317,603 | 10,981,453 | |
| Operating lease right-of-use assets | 1,6 |
Source: Item 23 — RECEIPT (FDD pages 67–238)
What This Means (2025 FDD)
According to 1 800 Packouts' 2025 Franchise Disclosure Document, the value of their operating lease right-of-use assets in 2024 was $1,603,081. This figure represents the company's rights to use leased properties, which are considered assets on their balance sheet. These assets are associated with the lease liabilities, reflecting 1 800 Packouts' obligations to make lease payments.
For a prospective franchisee, understanding the value of operating lease right-of-use assets is crucial because it reflects the scale of 1 800 Packouts' leased properties and their financial commitments. This information, in conjunction with the corresponding lease liabilities, provides insights into the company's financial health and its approach to managing property leases. A significant increase in these assets and liabilities might indicate expansion or a shift in leasing strategies.
It's important to note that these figures are part of 1 800 Packouts' overall financial statements and should be analyzed in context with other assets and liabilities. Franchisees should also consider how these lease obligations might affect the franchisor's ability to support its franchisees and invest in the brand. Reviewing these figures over several years can reveal trends and provide a more comprehensive understanding of the company's financial management.