What was the amount of accounts receivable, net of allowance for credit losses, for 1-800-GOT-JUNK? as of December 31, 2024?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the consolidated balance sheet shows the accounts receivable, net of allowance for doubtful accounts, as of December 31, 2023. The document states that the accounts receivable, net of allowance for doubtful accounts: 2023 - $690,491 was $21,204,821.

However, the 1-800-GOT-JUNK? LLC's notes to consolidated financial statements provides further details on accounts receivables. It states that for the period ended December 31, 2024, the total receivables from NASA customers was $5,746,154 and the receivables from franchisees was $7,581,074. After accounting for the allowance for credit losses of ($106,029), the total accounts receivable was $13,221,199.

It is important to note that the accounts receivable are comprised of receivables from franchisees and receivables from NASA customers where 1-800-GOT-JUNK? bills on behalf of the franchisees. The company maintains an allowance for credit losses for estimated losses inherent in its accounts receivable portfolio. Management considers historical losses adjusted to take into account of current market conditions and customers’ financial condition, the amount of receivables in dispute, current aged receivables, payment patterns and supportable forecasts of economic conditions.

As a prospective franchisee, understanding the composition and management of accounts receivable is crucial. It's important to inquire about the specific criteria and processes 1-800-GOT-JUNK? uses to determine the allowance for credit losses, as this can directly impact the financial health of the franchise. Additionally, understanding the payment terms and collection procedures for both franchisees and NASA customers is essential for managing cash flow effectively.