Blue Kangaroo Packoutz Franchise Costs, Fees & FDD

Year Business Began: 2019

Franchising Since: 2019

Headquarters: Ann Arbor, Michigan

Estimated Number of Units: 135

Franchise Description: The franchisor is PACKOUTZ International, LLC. The franchisor’s parent company is Belfor Franchise Group (BFG). The franchise offered is for the establishment and operation of a business offering inventorying, packing, moving, cleaning, deodorizing, storage services and other approved services, utilizing the Blue Kangaroo Packoutz business system.

Training Overview: Franchisees must successfully complete the JumpStart program before attending initial training. This includes the franchisor’s comprehensive preparation program that includes numerous pre-opening activities and may last six to eight weeks, depending on the pace franchisees establish to complete the activities. Initial training takes place at the franchisor’s headquarters in Ann Arbor, Michigan, the BFG headquarters, or another location designated by the franchisor. It may be attended by franchisees and the managing owner or, if applicable, the designated manager. Initial Training will last up to 10 days in duration. The managing owner or, if applicable, the designated manager, must attend the annual convention every year and pay the then-current fee. The managing owner or, if applicable, designated manager also must attend periodic refresher training courses and conferences, not to exceed one convention/conference per year, at the times and locations the franchisor determines.

Territory Granted: Franchisees will operate their Blue Kangaroo Packoutz business from a location within the territory that the franchisor approves and that will be identified in the Franchise Agreement. The territory will consist of specific zip-code(s) that have been awarded to the franchisee. The franchisor identifies the territory zip codes as determined by Census Bureau statistics. A standard territory will have between 750,000 people to a maximum of 1,000,000 people. A small market territory will have between 400,000 people to no more than 749,000 people. See FDD for territory protections received. Beginning with the 13th month of operation, franchisees must maintain a minimum level of monthly gross sales.

Obligations and Restrictions: Franchisees must at all times faithfully, honestly, and diligently perform their obligations under the Franchise Agreement. Except as stated by the franchisor, franchisees must designate at least one managing owner who will be the primary individual contact with the business and who the franchisor will approve in its sole discretion. Before franchisees begin operating the business, they must also hire one service technician who will be responsible for performing and overseeing the business. During the term of the agreement, franchisees and their immediate family may not engage in any other business or activity and cannot have an interest in or business relationship with any competitor of Blue Kangaroo Packoutz. Franchisees must offer and provide only and all of the services that the franchisor periodically require for Blue Kangaroo Packoutz franchisees in the manner that it prescribes, and franchisees may only provide the services that the franchisor has authorized.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. One additional term of 10 years is available if requirements are met.

Financial Assistance: If the franchisor grants the franchisee the right to open and operate a Blue Kangaroo Packoutz business for a standard franchise, the franchisor may offer the franchisee financing for a portion of the initial franchise fee if the franchisee meets the qualifications. The franchisor provides a 20% discount on the initial franchise fee for the first standard franchise and small market territory to veterans of U.S. Armed Forces who have been honorably discharged or otherwise meet the requirements of IFA’s VetFran program.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$59,900	$59,900
Initial Package Fee	$56,000	$56,000
Rent	$7,950	$30,000
Leasehold Improvements	$0	$30,000
Exterior Signage	$500	$3,000
Licenses/Permits	$0	$5,000
Technology System	$4,100	$6,000
Initial Supplies and Inventory	$20,000	$80,000
Insurance	$6,000	$35,000
Vehicles	$20,000	$95,636
Vehicle Wrap	$3,000	$6,000
Full-time Service Technician	$5,760	$15,360
Business Telephone Fee	$150	$1,050
High Speed Internet Anti-Virus Software and Electronic Mail	$210	$600
Security Deposits / Utility Deposits	$2,500	$6,500
Costs Incurred While Attending Training	$2,000	$5,000
Grand Opening Advertising and Marketing	$0	$6,000
Miscellaneous Pre-opening Expenses	$500	$5,000
Additional Funds – 3 months	$110,000	$150,000
ESTIMATED TOTAL (for a standard franchise)	$298,570	$596,046

 
Other Fees

Type of Fee	Amount
Royalty	The following percentages of gross sales, but no less than $500 per month, 7% of gross sales generated; if gross sales exceed $1,000,000, the royalty will reduce to 6% of gross sales for the remainder of the year, and the following year. Conversion franchises will pay 4% of gross sales generated for the first year of the term and 7% of gross sales generated in the remaining years of the term.
Brand Marketing Fund	2% of gross sales, beginning in month 13 of the term.
Additional Training or Hosting Fee	$25 per person, per day, of any training conducted at the franchisor’s headquarters, or the then-current fee, plus all travel, lodging, and meal expenses.
Technology Fee	The then-current fee, which is presently $460 per month.
Software Fee	The then-current fee, which is presently $399 per month.
Convention, Regional Meetings and/or Additional Training	The then current fee, which is currently (a) $1,000 maximum per person to attend the annual convention, and (b) $0 - $500 per person per event for regional meetings and/or additional training.
Transfer Fee	The then-current fee, which is currently $9,900 for a transfer to an out-of-network third party, or $3,000 for a transfer to an existing Blue Kangaroo Packoutz franchisee.
Transfer of Corporation Fee	$500
Broker Fee - Resale	If franchisees authorize the franchisor to enlist a third party broker to locate the transferee, there will also be a broker fee, which is currently $30,000.
Renewal Term Fee	10% of the then-current initial franchise fee.
Renovation, Refurbishing, and Remodeling Fees	Actual costs.
Late Report Fee	$50 per day that a report is late.
Late Payment Fee	$50 per week.
Administrative Fee	The then-current fee, which is presently $500 per transaction.
Collection Fee	The then-current fee, which is presently up to 35% of gross amounts collected on the franchisee’s behalf.
Non-Sufficient Funds (NSF) Fee	The then current fee, which is presently $50 per NSF.
Convention Non-Attendance Fee	The then current fee, which is presently $1,000.
Non-Compliance Fee	The then-current fee, which is presently up to $10,000 for each incident of out-of-territory conduct, or $5,000 per instance for other non-compliant acts or omissions.
Audit	Due only if an inspection is necessary. Cost of inspection or audit estimated at $2,500 - $3,500, plus 100% of understated royalty and interest, at the rate of 18% per annum or the maximum rate permitted by applicable law, whichever is greater, and all late fees, from the date originally due until the date of payment; if an understatement of the royalty is greater than 3%, franchisees also must pay the franchisor an additional penalty fee equal to 10% of the total amount of the understated gross sales.
Insurance	Cost of insurance; If the franchisee fails to maintain the required insurance, the franchisor has the right to procure insurance on the franchisee’s behalf and the franchisee must pay the franchisor, on demand, for the costs and premiums the franchisor incurs.
Interest Fee	18% per annum or the maximum permitted by law.
Indemnification	Will vary under circumstances.
Costs and Attorneys’ Fees	Will vary under circumstances.
Optional Upgrade to RingCentral Premium	$27.99
NORA Fee	None currently assessed; if the franchisor manages accounts through a national or regional accounts program the franchisee will pay up to 5% of gross sales.

The above information has been compiled from the FDD of Blue Kangaroo Packoutz. Year of FDD: 2025.
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