Score: 11/100

I would strongly caution anyone considering buying a Blue Kangaroo PACKOUTZ franchise to do extensive due diligence and, most importantly, speak privately with both current and former franchisees before investing. One of the biggest selling points presented around this franchise is its connection to BELFOR, one of the largest restoration companies in the world. That relationship can sound like an enormous competitive advantage and potential source of referral revenue. In reality, my experience and conversations within the system painted a very different picture. Franchisees across the country have struggled to generate meaningful work from the parent-company relationship, and there have even been situations where operations affiliated with the parent company have competed in the contents/packout space against franchisees. That creates another major problem with the business model. Some of the best potential referral partners for a packout company are independent restoration contractors. But you are trying to convince those contractors to send you their customers while your brand is closely associated with one of their largest competitors. Instead of creating clear separation between the franchise system and BELFOR to make franchisees more attractive independent partners, corporate leadership continually emphasizes the connection between the two companies. You can end up with the worst of both worlds: not enough work coming from the parent company while independent restoration contractors may view you as part of their competition. Leadership was an even bigger concern. In my experience, there was very little confidence among franchisees that legitimate concerns could be escalated and addressed objectively. Going above brand leadership did not necessarily result in an independent review of the problem. Complaints could simply make their way back down the chain, making an already difficult relationship worse. Accountability also seemed to flow downward. There was always someone else responsible for why something wasn’t working. The financial performance of the system should receive extremely close scrutiny from any prospective buyer. Do not simply look at revenue numbers. Ask franchisees what they are actually keeping after payroll, vehicles, warehouse/storage expenses, insurance, royalties, marketing, debt service and other operating costs. High revenue does not automatically mean a successful franchise. I have seen and heard of operators producing substantial revenue—even into the millions—while still struggling to generate acceptable profitability. What was particularly discouraging was the attitude toward struggling franchisees. Rather than acknowledging that there may be systemic issues affecting multiple operators, struggling owners could seemingly be treated as though they were simply on the wrong side of a “bell curve” or needed to be “thinned from the herd.” Franchisees who could no longer justify continuing to take on debt could be characterized as quitters. I also personally witnessed extremely unprofessional characterizations being made about franchisees who raised complaints, including referring to franchisees as “drunks.” That is not the type of leadership culture I would expect from an organization asking entrepreneurs to invest significant amounts of their own money and years of their lives into building its brand. There have also been legal disputes between franchisees and the franchisor that prospective buyers should investigate independently. My understanding is that some disputes have ultimately resulted in settlements containing confidentiality provisions. Anyone seriously considering purchasing this franchise should research litigation themselves and ask direct questions during validation. My biggest recommendation is simple: do not rely solely on the franchise sales presentation or the perceived value of the BELFOR relationship. Talk privately with a large number of current franchisees. Talk to former franchisees. Ask what they invested beyond the original projections. Ask how much revenue actually comes from BELFOR-related referrals. Ask about profitability rather than revenue. Ask how many owners are carrying significant debt. Ask what happens when a franchisee disagrees with leadership. Ask why owners have left the system. And specifically ask whether they would invest in this franchise again knowing what they know today. I would not. The concept itself has potential. Contents restoration and packout services can absolutely be a viable business. But a good industry does not automatically make a good franchise system. Based on what I experienced and observed, the leadership, economics, conflicts created by the parent-company relationship, and overall franchisee support would make me strongly recommend looking elsewhere before investing in Blue Kangaroo PACKOUTZ.

By: Verified Franchisee