BLUE KANGAROO PACKOUTZ Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$129,231 - $596,046
Franchise Fee
$20,000
Min Cash Required
$55,000
Total US Locations
130
Business Summary
BLUE KANGAROO PACKOUTZ operates a business specializing in the inventorying, packing, moving, cleaning, deodorizing, and storage of residential, commercial, and industrial contents. This service is primarily offered after events or disasters cause water, fire, storm, or other damage to property. BLUE KANGAROO PACKOUTZ businesses operate from a commercial or industrial park location, requiring at least 5,000 square feet of space, and utilize a proprietary business system for their services.
Corporate History
PACKOUTZ International, LLC, operating as BLUE KANGAROO PACKOUTZ, was formed on August 29, 2019, as a Delaware Limited Liability Company. Initially, the company offered franchises under the name 'PACKOUTZ' from August 2019 until December 2020. In January 2021, BLUE KANGAROO PACKOUTZ began offering franchises under its current name and trademarks. Its affiliate also rebranded its single company-owned location to a 'BLUE KANGAROO PACKOUTZ' location in January 2021. The franchisor is part of the BELFOR Franchise Group, LLC, which is a subsidiary of BELFOR (USA) Group, Inc., and ultimately BELFOR Holdings, Inc., which was acquired by ASP BF Intermediate Sub, LLC in April 2019.
Financial Overview
Investment Range
$129,231 - $596,046
Franchise Fee (Low)
$20,000
Franchise Fee (High)
$83,900
Minimum Cash Required
$55,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$32,000
Equipment Costs (High)
$190,636
Working Capital
$130,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of BLUE KANGAROO PACKOUTZ, as reflected in its financial statements, raises questions about its financial ability to provide services and support to franchisees. This is highlighted as a special risk in the Franchise Disclosure Document. While the auditor's report for its affiliate BFG Holdco, Inc. expressed an unqualified opinion on the financial statements, the FDD itself explicitly calls into question the franchisor's financial ability.
Financing Details
BLUE KANGAROO PACKOUTZ may offer financing for a portion of the Initial Franchise Fee to qualified franchisees. For Standard, Small Market, or Related Franchises, up to 50% of the Initial Franchise Fee can be financed with a minimum 50% down payment. For Conversion Franchises, up to 75% of the Initial Franchise Fee can be financed with a minimum 25% down payment. The financing term is up to three years (36 months) with a 9% interest rate. Monthly payments vary based on the financed amount and term. Franchisees can prepay the promissory note without penalty. A personal guaranty from the franchisee's owners and their spouses is required as security. Failure to make timely payments may result in immediate demand for the full outstanding balance or a late fee. BLUE KANGAROO PACKOUTZ has also been deemed eligible for Small Business Association (SBA) loan processing and provides certain information and assistance for SBA 7(a) and 504 loans.
Performance Metrics
Total US Locations
130
Franchised Units
130
Corporate Units
1
Avg Square Footage
5,000
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
BLUE KANGAROO PACKOUTZ has no litigation history to report. According to Item 3 of its Franchise Disclosure Document, no litigation is required to be disclosed for the franchisor or its management.
Bankruptcy History
BLUE KANGAROO PACKOUTZ has no bankruptcy history to report. According to Item 4 of its Franchise Disclosure Document, no bankruptcy is required to be disclosed for the franchisor or its key personnel.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, BLUE KANGAROO PACKOUTZ franchisees must be in substantial compliance with their current agreement, not have had three or more notices of default within the last 30 months (or 24 months for monetary/customer service defaults), and provide timely notice of their intent to renew. They must also sign the then-current franchise agreement (which may have different terms), upgrade and remodel their business to meet current system standards, meet the net-worth, financial, and Minimum Gross Sales requirements of an 11th-year franchised business, sign a general release, and pay a renewal fee. For subsequent renewal years, franchisees must achieve Minimum Gross Sales growth of at least three percent (3%) per year.
Training & Support Program
Franchisor Assistance
Before opening, BLUE KANGAROO PACKOUTZ designates the franchisee's territory, provides an initial package of equipment and supplies, loans the Operations Manual and System Standards, approves business forms and advertising materials, specifies insurance limits, provides initial training for the managing owner and one other person, and provides the business phone number. After opening, BLUE KANGAROO PACKOUTZ offers ongoing guidance on new products and services, purchasing supplies, marketing and advertising programs, financial and daily operations (including accounting), and general business advice. They also provide support for the required software system, a 24-hour contact number, periodic updates to the Operations Manual and System Standards, and periodic refresher training courses and conferences (not exceeding one per year).
Initial Training Hours
80
Training Location
Ann Arbor, Michigan, BFG headquarters, or another location we designate
Ongoing Support
After opening, BLUE KANGAROO PACKOUTZ provides ongoing guidance to its franchisees, including information on new products, services, and methods, as well as assistance with the purchase and use of supplies and products. Franchisees receive help with formulating and implementing marketing and advertising programs, and advice on the financial and daily operations of their business, including accounting and record-keeping. The franchisor offers general business and marketing advice, and provides support for its required franchise software management system. A 24-hour contact telephone number is available for communications. BLUE KANGAROO PACKOUTZ also issues periodic modifications to its Operations Manuals and System Standards, and conducts periodic refresher training courses and conferences, not exceeding one per year. Managing owners or designated general managers are required to attend an annual convention and may be required to attend additional refresher training courses and conferences.
Franchise Requirements
Ideal Candidate Profile
BLUE KANGAROO PACKOUTZ seeks local owners who are willing to invest and dedicate themselves to operating a business focused on packing, storage, and restoration services. Franchisees must designate a managing owner (or designated general manager) who will continuously commit full-time efforts to manage, promote, and enhance the business. While the managing owner can also serve as the required full-time experienced service technician if they possess the necessary experience, the franchisee must ensure a service technician is employed and trained to the franchisor's specifications. Ideal candidates are those who can meet these operational and staffing requirements and comply with the system's standards.
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
Limited
Staff Count
2
Territory Size Requirements
BLUE KANGAROO PACKOUTZ territories are defined by specific zip codes using Census Bureau statistics. A Standard Territory encompasses between 750,000 to 1,000,000 people, while a Small Market Territory covers 400,000 to 749,000 people. The maximum population for any single territory is 1,300,000 people.
Staffing Notes
The BLUE KANGAROO PACKOUTZ business requires specific staffing roles. The franchisee must designate a Managing Owner as the primary contact with PACKOUTZ International, LLC. This Managing Owner (or an approved Designated Manager) must successfully complete the JumpStart Initial Training Program within two months and the in-person Business Manager and Technical Operations Training (up to ten days) within four months of signing the Franchise Agreement. This role demands continuous full-time effort in managing, promoting, and enhancing the BLUE KANGAROO PACKOUTZ Business, without engaging in other conflicting business activities unless approved. Additionally, the BLUE KANGAROO PACKOUTZ business must employ a full-time experienced Service Technician to perform the actual packing, cleaning, and restoration services. The Managing Owner, if experienced and approved by PACKOUTZ International, LLC, may serve in this Service Technician role. At all times, the BLUE KANGAROO PACKOUTZ Business must employ at least one person who has completed the Initial Training. To ensure proprietary information protection, all Managing Owners, Designated Managers, Service Technicians, sales, and account management employees are required to sign non-disclosure and confidentiality agreements. These agreements prevent the disclosure of confidential information and restrict employees from soliciting BLUE KANGAROO PACKOUTZ customers for competitive purposes. If a Designated General Manager or Service Technician leaves, the franchisee must designate an approved successor within ten days, who then must attend the next available training. Failure to successfully train a second successor Designated General Manager can lead to the termination of the franchise agreement.