1-800-Packouts Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$269,300 - $514,000
Franchise Fee
$62,500
Total US Locations
48
Business Summary
1-800-PACKOUTS operates a contents restoration, packing, cleaning, and permanent climate-controlled storage business. The company specializes in restoring personal property after events like water, fire, storm, or other damage, offering services to residential, commercial, and industrial customers.
Corporate History
1-800-Packouts Holdco, LLC was organized on December 23, 2021, in Georgia. The company's predecessor, 1800Packouts Franchise, LLC, was organized on October 3, 2014, and began offering 1-800-PACKOUTS franchises in July 2015. The current franchisor succeeded its predecessor through a restructuring transaction in January 2022, when it was acquired by FS PEP Holdco, LLC, an affiliate of Princeton Equity Group, LLC.
Financial Overview
Investment Range
$269,300 - $514,000
Franchise Fee (Low)
$62,500
Franchise Fee (High)
$62,500
Royalty %
7%
Marketing %
3%
Equipment Costs (Low)
$74,500
Equipment Costs (High)
$188,500
Working Capital
$131,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for FS PEP Holdco, LLC and subsidiaries for the years ended December 31, 2024, and 2023, have received an unqualified audit opinion, meaning the auditors believe they present fairly, in all material respects, the financial position of the company. The consolidated balance sheets show positive cash and members' equity, although the statements of operations indicate net losses for both 2024 and 2023. Notes to the financial statements indicate the company maintains significant long-term debt and revolving credit facilities. Management, after consulting with legal counsel, believes the outcome of any legal proceedings will not materially impact the company's financial position, results of operations, or liquidity. There were no specific auditor concerns about going concern or other material financial health issues noted in the audit opinion.
Financing Details
1-800-PACKOUTS does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
48
Franchised Units
48
Corporate Units
0
Avg Square Footage
12,500
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
2
Litigation Summary
1-800-PACKOUTS has disclosed two prior legal actions, both filed in 2019. One was a lawsuit filed by a franchisee, 1-800-Packouts of Ohio, LLC, against 1-800-PACKOUTS, seeking a declaratory judgment regarding a breach of duties and the right to review Brand Fund statements. The other was a lawsuit filed by 1-800-PACKOUTS against the same franchisee and its principal, Jack Schwartz, alleging breaches of franchise agreements for failure to pay amounts due and provide reports. Both lawsuits were settled and dismissed with prejudice in May 2020.
Bankruptcy History
1-800-PACKOUTS has no bankruptcy information required to be disclosed in Item 4.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, 1-800-PACKOUTS franchisees must provide written notice of their election to renew between 60 days and 6 months before the current term ends. They must not be in material breach of any agreements with 1-800-PACKOUTS, have substantially complied with all conditions, sign a general release of claims against the franchisor, sign the then-current form of franchise agreement (which may have different terms), and pay a $10,000 renewal fee.
Training & Support Program
Franchisor Assistance
Before opening, 1-800-PACKOUTS assists franchisees with reviewing and approving their lease or purchase contract for the facility, as well as construction plans and specifications. They specify the management systems to be used and provide an initial System/Procedure Training program. The franchisor offers advice and guidance for the initial operation, and will approve the business opening once all requirements are met. Ongoing support includes guidance on operational methods, national advertising and promotion, administrative procedures, and any changes to the System. Franchisees may request additional guidance at their expense and are required to attend additional training programs, seminars, and conferences. 1-800-PACKOUTS also revises the operational manuals, reviews and approves suppliers, and administers the Brand Fund for national advertising.
Initial Training Hours
48
Training Location
National Training Center in Ball Ground, Georgia or a designated operating business
Ongoing Support
After opening, 1-800-PACKOUTS provides ongoing guidance and assistance in various areas, including operational methods, advertising, administrative procedures, and any System changes. Franchisees can request additional guidance and assistance for an hourly charge. The franchisor also requires franchisees, managers, and key personnel to attend optional or mandatory refresher training, seminars, conferences, and meetings. The operational manuals are revised periodically, and franchisees must implement these changes. Additionally, 1-800-PACKOUTS reviews and approves suppliers and administers the Brand Fund for national advertising. Franchisees must also participate in local marketing efforts.
Franchise Requirements
Ideal Candidate Profile
1-800-PACKOUTS requires that an Owner be designated as the 'Operating Principal' who must have authority over all business decisions for the Franchised Business and the power to bind the franchisee in all dealings with the franchisor. This Operating Principal must be directly involved in the daily operations of the business and continuously exert full-time and best efforts to promote and enhance the business. Franchisees may also appoint a Manager to supervise day-to-day operations, who must successfully complete the franchisor's training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
1-800-PACKOUTS territories are defined based on population, with a maximum initial population of 1,000,000 people. If a territory's population exceeds 1,250,000 people, the franchisee will be required to purchase additional franchises. If the population exceeds 1,000,000 for two consecutive years, franchisees may acquire an 'Add-on Territory' of up to 500,000 people for an additional fee.
Staffing Notes
1-800-PACKOUTS franchisees are solely responsible for hiring all employees and staff, determining their terms of employment and compensation, and ensuring they are trained according to the System. The business must be adequately staffed to meet anticipated demand. If the designated Manager leaves and the Operating Principal cannot provide on-site supervision, a new manager must complete the System/Procedure Training within 60 days. The franchisor provides initial training for up to four trainees, who should be managers or supervisors at the location.