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1-800-Packouts: $996K Average Sales vs. $196K-$381K Franchise Cost

Last updated on June 9, 2024 by Franchise Chatter Leave a Comment
in Contents Restoration Franchise, FDD Talk: Service Franchises, Franchise Earnings



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In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a 1-800-Packouts franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a 1-800-Packouts franchise, based on Items 5 and 6 of the company’s 2024 FDD


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Section III – Number of franchised and company-owned 1-800-Packouts outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the 1-800-Packouts franchise opportunity

Section V – Presentation and analysis of 1-800-Packouts’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

  • 2023 average, median, highest, and lowest revenues for the 15 1-800-Packouts franchisees that operated for the full 2023 calendar year
  • 2020, 2021, 2022, and 2023 aggregate system-wide revenues for the 1-800-Packouts franchisees that operated during the applicable calendar year
  • 2023 average, median, highest, and lowest revenues for the 5 single-unit 1-800-Packouts franchisees that operated for the full 2023 calendar year
  • 2023 average, median, highest, and lowest revenues for the 10 multi-unit 1-800-Packouts franchisees that operated for the full 2023 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the 1-800-Packouts franchise opportunity (exclusive content for Platinum subscribers)

Section I – 1-800-Packouts Franchise Costs

  • 1-800-Packouts franchise costs, based on Item 7 of the company’s 2024 FDD:
  • Initial Franchise Fee:  $62,500
  • Quick Start Package (“QSP”):  $48,500
  • Annual Conference Registration Deposit:  $1,000
  • Rent, Security Deposit, and Utility Deposits:  $3,000 to $9,000
  • Leasehold Improvements:  $2,000 to $20,000
  • Equipment:  $10,000 to $65,000
  • Signage:  $1,500 to $5,000
  • Furniture, Office Equipment, and Software:  $4,000 to $7,000
  • Vehicles:  $3,000 to $70,000
  • Business Licenses and Permits:  $200 to $1,000
  • Professional Fees:  $500 to $2,500
  • Initial Inventory and Supplies:  $12,000 to $20,000
  • Insurance:  $12,500 to $20,000
  • Training Expenses:  $1,500 to $8,000
  • Marketing:  $500 to $3,000
  • Additional Funds – First 3 Months:  $76,500 to $100,000
  • Total Estimated 1-800-Packouts Franchise Costs:  $196,700 to $381,000

Section II – 1-800-Packouts’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

  • 1-800-Packouts’ initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:
  • Initial Franchise Fee:  $62,500
  • Population Fee:  $500 to $2,000 per month based on the population in your Territory
  • Royalty Fee:  7% of Gross Sales
  • Marketing Fee:  3% of Gross Sales
  • Advertising Cooperative Contributions:  established by regional advertising cooperative members

Section III – Number of Franchised and Company-Owned 1-800-Packouts Outlets

Franchised

2021


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  • Outlets at the Start of the Year:  67
  • Outlets at the End of the Year:  58
  • Net Change:  -9

2022

  • Outlets at the Start of the Year:  58
  • Outlets at the End of the Year:  53
  • Net Change:  -5

2023

  • Outlets at the Start of the Year:  53
  • Outlets at the End of the Year:  45
  • Net Change:  -8

Company-Owned

2021

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2022

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  1
  • Net Change:  0

2023


🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.


📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.

  • Outlets at the Start of the Year:  1
  • Outlets at the End of the Year:  0
  • Net Change:  -1

Section IV – News Updates on the 1-800-Packouts Franchise

  • 2023 Success Positions Five Star Franchising for Explosive Growth in 2024
  • Stefan Figley of 1-800-Packouts on How to Build Lasting Customer Relationships
  • Five Star Franchising Honors Top-Performing Franchise Owners at Home Services Summit
  • 1-800-Packouts Puts Service at the Heart of Its System
  • Five Star Franchising Acquires 1-800-Packouts and Launches 1-800-Textiles
  • 1-800-Packouts Did Not Rank on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the 1-800-Packouts Franchise (Item 19, 2024 FDD)

  • The following financial data represents 15 out of 19 franchisees, with data excluded only from the four franchisees who were not in operational compliance throughout 2023.
  • Of these 15 franchisees whose data is reported, each operated an average of 2.9 locations/units.
  • The franchisees who were excluded did not operate for the full 2023 reporting year.

Part 1 – Per Franchisee Performance

  • During the fiscal year ended December 31, 2023, the per-franchisee revenues (including all sales or revenues received, without any deductions) reflected the following:
  • Average Revenues:  $2,363,267
  • Number of Operational Franchisees Exceeding This Average:  5 of the 15 (33.3%)
  • Median Revenues:  $1,601,554
  • Lowest Revenues:  $209,549
  • Highest Revenues:  $8,804,084

Part 2 – System-Wide Historical Revenues

  • The revenues in Part 2 are the aggregate system-wide revenues, as a single data set, and as a result have no associated medians, highs, or lows.
  • Revenues includes all sales or revenues received, without any deductions.

2020

  • Revenues:  $26,211,604.14
  • Franchisees Reporting:  16

2021

  • Revenues:  $27,560,403.53
  • Franchisees Reporting:  21

2022

  • Revenues:  $20,003,735.66
  • Franchisees Reporting:  21

2023

  • Revenues:  $35,449,005
  • Franchisees Reporting:  15

Part 3 – Performance of Franchisees Operating a Single Unit in 2023 for the Entire Calendar Year

  • Average Revenues:  $996,742
  • Number and Percentage of Single-Unit Franchisees Exceeding This Average:  3 of the 5 (60%)
  • Median Revenues:  $1,277,913
  • Lowest Revenues:  $318,762
  • Highest Revenues:  $1,601,554

Part 4 – Performance of Franchisees Operating Multiple Units in 2023 for the Entire Calendar Year

  • Average Revenues:  $3,046,530
  • Average Number of Units per Reporting Franchisee:  3.8 (10 franchisees operating 38 units)
  • Number and Percentage of Multi-Unit Franchisees Exceeding This Average:  2 of the 10 (20%)
  • Median Revenues:  $2,460,799
  • Lowest Revenues:  $209,549
  • Highest Revenues:  $8,804,084
  • These figures are only estimates of what 1-800-Packouts thinks you may sell. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – 1-800-Packouts Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️



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