1-800-Packouts Franchise
Cost, fees, owner earnings, closure rate and litigation for a 1-800-Packouts franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
1-800-Packouts discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
One company-owned outlet (San Diego, 2025): $2.46M revenue, $730K net income. 22 franchisees (12+ months): median $637.7K, average $1.87M revenues. System-wide 2025 sales: $39.3M from 21 franchisees.
What a 1-800-Packouts franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $62,500 | Item 5 — paid up front, before you open |
| Royalty | 7% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 10% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $269,300 – $514,000 | Item 7 — franchisor's own low/high estimate |
7% royalty + 3% marketing fee. NROP fee $500-$2,000/month based on territory population. Add-on territory $30K.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
1-800-Packouts system size and owner turnover
| Total outlets | 61 |
| Ceased operations | 0 |
| Terminated by franchisor | 6 |
| Transferred to new owners | 5 |
| Closure rate | 0.0% of outlets |
2025: 6 terminations, 5 transfers; 2024: 19 terminations, 1 transfer. High historical turnover.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is 1-800-Packouts worth it? — how it compares to 29 similar franchises
| Ongoing fees | 10% of sales | about average |
| Startup cost | from $269,300 | pricier than 93% of peers |
| Disclosure honesty | Grade B | more honest than 83% of restoration & remediation franchises |
| Closure rate | 0.0% of outlets | better than most (median 2.7%) |
| Disclosed lawsuits | 2 | more litigious than 87% of peers |
Benchmarked against every restoration & remediation franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a 1-800-Packouts
The franchisor's framing: One company-owned outlet (San Diego, 2025): $2.46M revenue, $730K net income. 22 franchise… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
1-800-Packouts franchise — frequently asked
- How much does a 1-800-Packouts franchise cost?
- The FDD lists a total initial investment of about $269,300–$514,000, including a $62,500 initial franchise fee.
- How much do 1-800-Packouts franchise owners make?
- One company-owned outlet (San Diego, 2025): $2.46M revenue, $730K net income. 22 franchisees (12+ months): median $637.7K, average $1.87M revenues. System-wide 2025 sales: $39.3M from 21 franchisees. We grade this disclosure B for honesty.
- What are the 1-800-Packouts franchise fees?
- 1-800-Packouts' FDD discloses a $62,500 initial franchise fee, a 7% royalty on gross sales, a 3% advertising-fund contribution, for roughly 10% of gross sales in recurring fees before rent, labor, or debt service. 7% royalty + 3% marketing fee. NROP fee $500-$2,000/month based on territory population. Add-on territory $30K.
- What is the 1-800-Packouts franchise profit margin?
- 1-800-Packouts does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: One company-owned outlet (San Diego, 2025): $2.46M revenue, $730K net income. 22 franchisees (12+ months): median $637.7K, average $1.87M revenues. System-wide 2025 sales: $39.3M from 21 franchisees. Recurring fees alone take about 10% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the 1-800-Packouts franchise failure rate?
- 2025: 6 terminations, 5 transfers; 2024: 19 terminations, 1 transfer. High historical turnover.
- How many 1-800-Packouts locations are there?
- 1-800-Packouts' FDD reports 61 total outlets, with 0 that ceased operations in the most recent reporting year and 5 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does 1-800-Packouts have complaints or lawsuits?
- 1-800-Packouts discloses 2 legal matters in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a 1-800-Packouts franchise worth it?
- It depends on the numbers, not the pitch. 1-800-Packouts scores B on disclosure honesty, carries about 10% of sales in ongoing fees, and discloses 2 legal matters. Get the real owner take-home before you sign.
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Source: MN CARDS 35892-202604-15 (Clean FDD 2026). FranchiseValidate is independent and not affiliated with 1-800-Packouts or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.