What were the Ad Fund expenses for 1-800-GOT-JUNK? for the period ended May 31, 2024?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
May 31 May 31
Sales Centre $ 13,515,783 $ 10,244,752 Licensing fees 10,400,913 8,365,599 Management and administration fees 6,039,630 5,687,420 Ad Fund 4,504,472 3,440,748 Interest on outstanding balance due to RBDS 303,956 176,377
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the Ad Fund expenses for the period ended May 31, 2024, were $3,440,748. This figure represents the amount 1-800-GOT-JUNK? spent on advertising and promotional activities during that time.
For a prospective franchisee, understanding Ad Fund expenses is crucial because it reflects the franchisor's investment in brand awareness and customer acquisition. A higher Ad Fund expenditure could lead to increased brand recognition and, potentially, more business for individual franchisees.
It is important to note that this figure represents expenses incurred by 1-800-GOT-JUNK? and not necessarily the contributions made by franchisees to the Ad Fund. Franchisees should inquire about the specific allocation of Ad Fund fees and the types of advertising and marketing initiatives covered by these expenses to assess the value and effectiveness of the fund.