Blue Kangaroo Packoutz Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Blue Kangaroo Packoutz is a restoration franchise specializing in contents cleaning and pack-outs, handling belongings damaged by fire, water, or other disasters. Franchisees run a crew-based operation inventorying, cleaning, and storing contents, typically through insurance claims.
FranchiseVerdict summary · 2026
A BLUE KANGAROO PACKOUTZ franchise requires a total initial investment of $277K – $595K, including a $45K – $60K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $813K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 30 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $277K – $595K
- 79th pct Cleaning & Ma…
- Avg gross sales
- $813K
- Incl. company outlets25th pct Cleaning & Ma…
- Royalty
- 7.0%
- 30th pct Cleaning & Ma…
- Units
- 135
- 69th pct Cleaning & Ma…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $277K – $595K including a $45K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $813K/year (median $699K) (includes company-owned outlets).
- RISKVerdict A (Strongest tier), verdict score 98/100 (higher is better). SBA loan charge-off rate of 0.0% across 30 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG9 units terminated last reporting year (6.7% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- PACKOUTZ International, LLC
- Parent company
- BELFOR Franchise Group, LLC
- Ultimate parent
- BELFOR Holdings, Inc.
- Predecessor
- PACKOUTZ (offered under this name August 2019 - December 2020)
- Prior franchisor entity
- CEO title
- President
- Timothy Fagan
- CEO experience
- 2020 yrs
- Years in role or industry
- Incorporated in
- DE
- HQ
- 5405 Data Court, Ann Arbor, MI 48108
- Auditor
- BDO USA, P.C.
- Audited financials
- Franchisor revenue
- $30.1M
- vs $29.5M prior year
Overview
About
- CEO
- Timothy Fagan
- Headquarters
- MI
- Founded
- 2019
- FDD year
- 2026
- States available
- 36
Can you afford it, and what does the money buy?
Entry cost runs 39% above the typical cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown57 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee (Standard Franchise) | $60K | $60K | |
| Initial Package Fee (Standard Franchise) | $55K | $55K | |
| Rent (Standard Franchise) | $8K | $30K | |
| Leasehold Improvements (Standard Franchise) | $0 | $30K | |
| Exterior Signage (Standard Franchise) | $500 | $3K | |
| Licenses/Permits (Standard Franchise) | $0 | $5K | |
| Technology System (Standard Franchise) | $4K | $6K | |
| Initial Supplies and Inventory (Standard Franchise) | $20K | $80K | |
| Insurance (Standard Franchise) | $6K | $35K | |
| Vehicles (Standard Franchise) | $0 | $96K | |
| Vehicle Wrap (Standard Franchise) | $3K | $6K | |
| Full time Service Technician (Standard Franchise) | $6K | $15K | |
| Business Telephone Fee (Standard Franchise) | $150 | $1K | |
| High Speed Internet Anti-Virus Software and Electronic Mail (Standard Franchise) | $210 | $600 | |
| Security Deposits / Utility Deposits (Standard Franchise) | $3K | $7K | |
| Costs Incurred While Attending Training (Standard Franchise) | $2K | $5K | |
| Grand Opening Advertising and Marketing (Standard Franchise) | $0 | $6K | |
| Miscellaneous Pre-opening Expenses (Standard Franchise) | $500 | $5K | |
| Additional Funds - 3 months (Standard Franchise) | $110K | $150K | |
| Initial Franchise Fee (Small Market Franchise) | $45K | $45K | |
| Total initial investment | $594K | $1.5M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $277K – $595K
- Bottom third — review vs category
- Liquid capital req'd
- $110K – $150K
- Bottom third — review vs category
- Franchise fee
- $45K – $60K
- Top 40% of category vs category
- Royalty
- 7.0%
- tiered · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $580 |
| Training fee | $25 |
| Transfer fee | $15K |
| Renewal fee | $6K |
| Inventory (initial) | $20K – $80K |
| Total fee load | 9.0% of rev |
What do units actually make?
Average unit sales run 10% below the cleaning & maintenance norm.
Includes company-owned outlets
Source: FDD 2026 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$81K
10.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.0 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one BLUE KANGAROO PACKOUTZ unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
14%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 BLUE KANGAROO PACKOUTZ units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$488K
on $2.4M purchase
Total debt
$2.0M
SBA $1.2M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $813K
- Per unit, per year
- Median gross sales
- $699K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 63 franchisees
- vs category median 32
- Range (low → high)
- $0→$4.1M
- Cohort dispersion (min → max)
- Quartile band
- $141K→$1.8M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 192 Cleaning & Maintenance brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $813K/year in gross sales. Revenue-to-investment ratio: 1.9x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 9.0% (near the Cleaning & Maintenance average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 30.1% CAGR over 3 years across 135 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Cleaning & Maintenance averages
How Blue Kangaroo Packoutz Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 135
- Opened
- 11
- Last reporting year
- Closed
- 9
- Terminated
- 9
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.7%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- +30.1%
- Net unit change over 3 years
- 3-yr CAGR
- +30.1%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 11
- Terminated (3yr)
- 9
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 6
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 4.4%
- Owners selling to other franchisees
- Termination rate
- 6.7%
- Franchisor-initiated terminations
- Ceased ops
- 6.7%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 36 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
36
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 30
- Loan volume
- $11.5M
- Median loan
- $296K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 12
- Defaults
- 0
- Typical loan rate
- 10.3%
- avg rate to borrowers
- Franchised industry avg
- 11.6%
- brand beats franchise avg ↓
- Jobs supported
- 215
- 1.9 per loan
- Lender concentration
- 32%
- top lender's share
Borrower mix: 89% went to startups / new businesses, 11% to established operators
Franchise vs independent — in other services to buildings and dwellings, franchised businesses charge off at 11.6% vs 20.7% for independents — franchising is associated with 44% lower SBA default risk in this category.
Top lenders financing Blue Kangaroo Packoutz franchisees
Showing 3 of 12 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Blue Kangaroo Packoutz's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 14 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 30 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Stagnant growth, undisclosed profitability, and going concern issues create meaningful uncertainty about franchisor viability and franchisee ROI.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · BDO USA, P.C.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 98 / 100 verdict
- 01HIGHGoing Concern status is FALSE — franchisor may have financial instability or operational challenges
- 02MEDNet Income not disclosed in Item 19 — unable to validate actual profitability despite $813k average revenue claim
- 03MINORMinimal unit growth of 1.5% YoY suggests stagnation or market saturation in a 135-unit system
- 04MINORHigh initial investment range ($110k–$594k) with wide variance indicates inconsistent territory/model costs
- 05MINOR7% royalty on gross sales (not net) creates ongoing pressure, especially if net margins are thin
- 06MINOR5-year term is shorter than industry standard (10 years), increasing renewal uncertainty
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 9.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 50 mi |
| Territory population | 750,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 15 days |
| Curable defaultsℹ | 17 |
| Mandatory arbitration | Yes |
| Arbitration location | Ann Arbor, Michigan |
| Jury trial waiver | Yes |
| Governing law | MI |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 54 hrs
- On-the-job training
- 25 hrs
- Training location
- Ann Arbor, Michigan, BFG headquarters, or another location designated by franchisor
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- franchisee with franchisor approval
- Franchisor financing
- Offered
- Item 10
- POS system
- BLUE KANGAROO PACKOUTZ Software
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: BLUE KANGAROO PACKOUTZ Software
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
BLUE KANGAROO PACKOUTZ · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a BLUE KANGAROO PACKOUTZ franchise?
The total investment to open a BLUE KANGAROO PACKOUTZ franchise ranges from $277K – $595K, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do BLUE KANGAROO PACKOUTZ franchise owners earn?
According to Item 19 of the BLUE KANGAROO PACKOUTZ FDD, the average gross sales per unit is $813K. The median is $699K. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the BLUE KANGAROO PACKOUTZ FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the BLUE KANGAROO PACKOUTZ FDD and qualifies whose outlets they describe.
What is BLUE KANGAROO PACKOUTZ's franchise failure rate?
Based on SBA 7(a) loan data, BLUE KANGAROO PACKOUTZ has a charge-off rate of 0.0% across 30 loans, meaning 0.0% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many BLUE KANGAROO PACKOUTZ franchise locations are there?
As of their most recent FDD filing, BLUE KANGAROO PACKOUTZ has 135 total units in the United States, including 134 franchised units and 1 company-owned units. 11 new units were opened in the latest reporting year.
Is BLUE KANGAROO PACKOUTZ a good franchise to buy?
FranchiseVerdict rates BLUE KANGAROO PACKOUTZ as a A-grade franchise with a verdict score of 98 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent BLUE KANGAROO PACKOUTZ, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.