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What were the Ad Fund fees for 1-800-GOT-JUNK? for the period ended May 31, 2025?

1_800_Got_Junk Franchise · 2025 FDD

Answer from 2025 FDD Document

May 31 May 31

Ad Fund fees

4,504,472 3,816,955

Expenses: Ad Fund 4,504,472 3,440,748

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 fees for the period ended May 31, 2025, were $4,504,472. For comparison, the Ad Fund fees for the same period in 2024 were $3,816,955. These fees are collected from franchisees and are used to promote the 1-800-GOT-JUNK? brand.

These figures reflect the revenue that 1-800-GOT-JUNK? receives from Ad Fund fees charged to its franchisees. The Ad Fund is used for marketing and advertising activities to increase brand awareness and generate leads for franchisees. The amount spent on the Ad Fund during the same period is also listed as $4,504,472 for 2025 and $3,440,748 for 2024.

Prospective franchisees should consider these fees as part of their ongoing expenses. It's important to understand how the Ad Fund is managed and how it benefits franchisees in terms of marketing support and brand recognition. A significant portion of the expenses is allocated to licensing fees and management and administration fees, which totaled $10,400,913 and $6,039,630 respectively for the period ended May 31, 2025.

Understanding the allocation of these fees can help a franchisee assess the value they receive from the franchisor's marketing efforts. It is also important to note that 1-800-GOT-JUNK? also charges its related parties Ad Fund fees for services provided based on franchise agreements. For the period ended May 31, 2025, the related parties were charged $1,417,156, while for the period ended May 31, 2024, they were charged $1,321,556.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.