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

Section I – Estimated initial investment (franchise costs) for a Blue Kangaroo Packoutz franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Blue Kangaroo Packoutz franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Blue Kangaroo Packoutz 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 Blue Kangaroo Packoutz franchise opportunity

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

• 2023 actual gross sales collected for the 1 affiliate-owned Blue Kangaroo Packoutz business located in Mt. Clemens, Michigan (“Mt. Clemens Location”) operating in one territory, and 12 franchisees operating in 21 territories that were open and operating for all 12 months in the year 2023, by quartiles

• 2023 average, median, highest, and lowest gross sales for the 1 affiliate-owned Blue Kangaroo Packoutz business located in Mt. Clemens, Michigan (“Mt. Clemens Location”) operating in one territory, and 12 franchisees operating in 21 territories that were open and operating for all 12 months in the year 2023, by quartile (top 25%, top 50%, top 75%, bottom 25%, bottom 50%, bottom 75%, and total)

• 2023 average, median, highest, and lowest revenue per location and per territory for the 1 affiliate-owned Blue Kangaroo Packoutz business located in Mt. Clemens, Michigan (“Mt. Clemens Location”) operating in one territory, and 12 franchisees operating in 21 territories that were open and operating for all 12 months in the year 2023, by number of territories owned (1, 2, and 3 or more)

Section VI – Key ratios, comparables, computations, and analyses for the Blue Kangaroo Packoutz franchise opportunity (exclusive content for Platinum subscribers)

Section I – Blue Kangaroo Packoutz Franchise Costs

• Blue Kangaroo Packoutz franchise costs (standard franchise), based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,900
• Initial Package Fee:  $53,600
• Rent:  $7,950 to $30,000
• Leasehold Improvements:  $0 to $30,000
• Exterior Signage:  $500 to $3,000
• Licenses/Permits:  $0 to $5,000
• Technology System:  $4,100 to $6,000
• Initial Supplies and Inventory:  $20,000 to $80,000
• Insurance:  $6,000 to $35,000
• Vehicles:  $20,000 to $95,636
• Vehicle Wrap:  $3,000 to $6,000
• Full-Time Service Technician:  $5,760 to $15,360
• Business Telephone Fee:  $150 to $1,050
• High-Speed Internet, Anti-Virus Software, and Electronic Mail:  $210 to $600
• Security Deposits/Utility Deposits:  $2,500 to $6,500
• Costs Incurred While Attending Training:  $2,000 to $5,000
• Grand Opening Advertising and Marketing:  $0 to $6,000
• Miscellaneous Pre-opening Expenses:  $500 to $5,000
• Additional Funds for 3 Months:  $55,000 to $75,000
• Total Estimated Blue Kangaroo Packoutz Franchise Costs:  $241,170 to $518,646

Section II – Blue Kangaroo Packoutz’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Blue Kangaroo Packoutz’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $59,900
• Royalty:  7% of Gross Sales, but no less than $500 per month
• Brand Marketing Fund (“Brand Marketing Fee”):  2% of Gross Sales, beginning in month 13 of the Term

Section III – Number of Franchised and Company-Owned Blue Kangaroo Packoutz Outlets

Franchised

2021

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  10
• Net Change:  +7

2022

• Outlets at the Start of the Year:  10
• Outlets at the End of the Year:  22
• Net Change:  +12

2023

• Outlets at the Start of the Year:  22
• Outlets at the End of the Year:  103
• Net Change:  +81

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

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

Section IV – News Updates on the Blue Kangaroo Packoutz Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Blue Kangaroo Packoutz Franchise (Item 19, 2024 FDD)

• The following representation is a historical financial performance representation based upon the actual results of businesses, which are currently operated by Blue Kangaroo Packoutz’s affiliate, Blue Kangaroo PZNA, located in Mt. Clemens, Michigan (“Mt. Clemens Location”) operating in 1 territory, and 12 franchisees operating in 21 territories that were open and operating for all 12 months in the year 2023. These businesses are collectively referred to as “Locations” in this Item 19.

• Excluded from this report are the 44 franchisees operating in 82 territories who were not yet open for at least 12 months by December 31, 2023.

• For the purposes of this Item 19, January 1, 2023 through December 31, 2023, will be referred to as the “Measurement Period.”

Part 1 – Annual Gross Sales of Reported Franchisees

• Part 1 below represents the Gross Sales Collected by each Location in 2023.

• “Gross Sales Collected” means all revenue collected from operating the Location, whether in cash, in services in kind, from barter and/or exchange, or otherwise, less any sales tax or refunds for non-salvageable items.

Gross Sales Collected in 2023

• Raleigh, NC:  $1,865,368
• Mount Clemens, MI:  $1,674,661
• Cincinnati, OH (2 territories):  $1,503,051
• Denver, CO (2 territories):  $1,488,683
• Fresno, CA:  $1,029,075
• Ypsilanti, MI:  $944,389
• Portland, OR (2 territories):  $929,179
• Colorado Springs, CO (3 territories):  $512,763
• Birmingham, AL (2 territories):  $442,021
• Grand Junction, CO:  $425,347
• Salt Lake City, UT (3 territories):  $322,202
• Oklahoma City, OK:  $264,121
• Durham, NC:  $44,535
• Total Gross Sales Collected:  $11,445,395
• Average of Gross Sales Collected:  $880,415

• As stated above, the Mt. Clemens location is operated by Blue Kangaroo Packoutz’s affiliate. It operates under the same guidelines as all other franchise locations. The territory size for this location is larger than the standard offering, at 4,678,926 population, which is the equivalent of 6 Standard Territories.

• As shown in the chart, the average Gross Sales Collected during the Measurement Period was $880,415. Of the 13 locations in this Item 19, 7 locations exceeded the average and 6 earned less than the average. The median Gross Sales amount for the 13 locations was $929,179.

• The Portland location operated throughout the Measurement Period, but was transferred to a new franchisee in late January 2023. The full year’s Gross Sales are included.

Part 2 – Average Annual Gross Sales Reported Franchisees

• The table below sets forth the average annual Gross Sales during the Measurement Period as reported by the Locations during the Measurement Period.

Top 25%

• Number of Locations in Group:  3
• Average Gross Sales:  $1,681,027
• Locations Who Exceeded Average:  1
• Highest Gross Sales:  $1,865,368
• Lowest Gross Sales:  $1,503,051
• Median Gross Sales:  $1,674,661

Top 50%

• Number of Locations in Group:  6
• Average Gross Sales:  $1,417,538
• Locations Who Exceeded Average:  4
• Highest Gross Sales:  $1,865,368
• Lowest Gross Sales:  $944,389
• Median Gross Sales:  $1,495,867

Top 75%

• Number of Locations in Group:  9
• Average Gross Sales:  $1,154,354
• Locations Who Exceeded Average:  4
• Highest Gross Sales:  $1,865,368
• Lowest Gross Sales:  $442,021
• Median Gross Sales:  $1,029,075

Bottom 25%

• Number of Locations in Group:  4
• Average Gross Sales:  $264,051
• Locations Who Exceeded Average:  3
• Highest Gross Sales:  $425,347
• Lowest Gross Sales:  $44,535
• Median Gross Sales:  $293,162

Bottom 50%

• Number of Locations in Group:  7
• Average Gross Sales:  $420,024
• Locations Who Exceeded Average:  4
• Highest Gross Sales:  $929,179
• Lowest Gross Sales:  $44,535
• Median Gross Sales:  $425,347

Bottom 75%

• Number of Locations in Group:  10
• Average Gross Sales:  $640,213
• Locations Who Exceeded Average:  6
• Highest Gross Sales:  $1,488,683
• Lowest Gross Sales:  $44,535
• Median Gross Sales:  $477,392

Total

• Number of Locations in Group:  13
• Average Gross Sales:  $880,415
• Locations Who Exceeded Average:  7
• Highest Gross Sales:  $1,865,368
• Lowest Gross Sales:  $44,535
• Median Gross Sales:  $929,179

• “Gross Sales” is defined as all revenue received from operating the Business including cash, in services in kind, from barter and/or exchange, or otherwise, but not including sales tax and returns.

Part 3 – Locations Breakdown

• The table below sets forth the average annual Gross Sales during the Measurement Period as reported by the 13 Locations operating in 21 Territories who were open the full calendar year. It is a breakdown of those who own 1 Territory, 2 Territories, and 3+ Territories.

1 Territory Owned

• Number of Owners:  7
• Number of Total Territories Owned:  7
• Average Revenue per Location:  $892,499
• Median Revenue per Location:  $944,389
• Average Revenue per Territory:  $892,499
• Median Revenue per Territory:  $944,389

2 Territories Owned

• Number of Owners:  4
• Number of Total Territories Owned:  8
• Average Revenue per Location:  $1,090,734
• Median Revenue per Location:  $1,208,931
• Average Revenue per Territory:  $545,367
• Median Revenue per Territory:  $604,466

3 or More Territories Owned

• Number of Owners:  2
• Number of Total Territories Owned:  6
• Average Revenue per Location:  $417,483
• Median Revenue per Location:  $417,483
• Average Revenue per Territory:  $139,160
• Median Revenue per Territory:  $139,160

• The sales information presented in this Item was provided by the locations through monthly Gross Sales, other reports, or survey.

• Some outlets have earned this much. Your individual results may differ. There is no assurance that you’ll earn as much.

Section VI – Blue Kangaroo Packoutz Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️