What was the amount of accounts receivable for 1-800-GOT-JUNK? as of May 31, 2025?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the total accounts receivable as of May 31, 2025, was $11,313,651. This figure is calculated by combining receivables from NASA customers, which amounted to $5,128,100, and receivables from franchisees, which totaled $6,291,580. An allowance for credit losses of $106,029 is then subtracted from the sum of these receivables to arrive at the final accounts receivable amount.

Accounts receivable represent the money owed to 1-800-GOT-JUNK? by its customers and franchisees for services already provided. For a prospective franchisee, understanding the composition and management of accounts receivable is crucial. It reflects the efficiency of the company's billing and collection processes. A high level of accounts receivable could indicate potential issues with collecting payments, which can impact cash flow.

The FDD also notes that 1-800-GOT-JUNK? maintains an allowance for credit losses, which is an estimate of the amounts that may not be collectible. This indicates a proactive approach to managing potential bad debts. The allowance for credit losses was $106,029 as of both May 31, 2025, and December 31, 2024, suggesting stability in the estimated uncollectible amounts over that period.

Furthermore, the accounts receivable are comprised of receivables from franchisees and NASA customers, where 1-800-GOT-JUNK? bills on behalf of the franchisees. This distinction is important as it highlights the different revenue streams and customer relationships that 1-800-GOT-JUNK? manages. Prospective franchisees should inquire about the terms and conditions related to these receivables, including payment schedules and any associated risks.