If you are looking towards opening a 1-800 Packouts Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
1-800 Packouts Franchise LLC was founded in 2013 and they began franchising in 2015, about 5 years ago. The founder and current CEO of the company is Kevin Loner and they have their corporate head office at 110 Brunes Wy. Ball Ground, GA 30107, USA. 1-800 Packouts Franchise LLC also provides franchising opportunities. As of the 2021 Franchise Disclosure Document, there are 74 franchised 1-800-Packouts locations in the USA. 1-800-Packouts has franchise locations in 19 states. The largest region is the South with 35 franchise locations.
1-800-Packouts’ Franchise LLC services include content packouts, inventory, professional cleaning, private storage, total loss, and takebacks.
As a company that has proven to be the Unified Front in the Personal Property Insurance Industry, 1-800-Packouts sets the bar. Their greatest strength is their people. From the Corporate Leadership to Franchise Owners all across the U.S., 1-800 Packouts is comprised of some of the most experienced names in the Industry. They offer an unparalleled level of professionalism and proficiency in an industry that is known to be demanding and in the need of this type of people handling personal property claims.
The 1-800-Packouts educational process is another key component of raising the standard in the industry of how personal property claims are handled. They are never satisfied with meeting the status quo. Their goal to always improve their process, improve themselves, and the experience their clients have.
Here are areas where you are expected to spend money and the costs associated with it;
- Initial Investment Range: $69,450 – $234,000
- Franchise Fee: $55,000
- Royalty Fee: 6 percent of Gross Sales and the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
- Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution: At least 1 percent per calendar year and the Due Date: for this is Monthly.
Please note that each local advertising Cooperative may elect to increase their monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by 1-800 Packouts Franchise LLC and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative.
If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse 1-800 Packouts Franchise LLC if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to 1-800 Packouts Franchise LLC if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if 1-800 Packouts Franchise LLC is required to defend your unsuccessful claim against it.
- Veteran Incentives: $1,500 for training fee
- Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: 1-800-Packouts has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, and inventory et al.
- Initial Investment: $69,450 – $234,000
- Ongoing Initial Franchise Fee: $55,000 – $55,000
- Working Capital: $5,000 to $30,000
- Ongoing Royalty Fee: 7%
- Ad Royalty Fee: 3%