What was the amount of Ad Fund fees for 1-800-GOT-JUNK? for the period ended May 31, 2024?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, for the period ended May 31, 2024, 1-800-GOT-JUNK? collected $3,816,955 in Ad Fund fees. These fees are collected from franchisees and are used to promote the 1-800-GOT-JUNK? brand and services.

These Ad Fund fees are a significant revenue source for 1-800-GOT-JUNK?, and they also represent a substantial expense. During the same period, 1-800-GOT-JUNK? paid $3,440,748 to RBDS for Ad Fund services. RBDS (Rubbish Boys Disposal Service Inc.) is a related party to 1-800-GOT-JUNK?.

For a prospective franchisee, understanding the flow of Ad Fund fees is crucial. While franchisees contribute to the Ad Fund, a portion of those funds is then paid to a related entity for advertising and marketing services. It is important to evaluate whether these related-party transactions are conducted at arm's length and whether the franchisee is receiving fair value for their Ad Fund contributions. A potential franchisee should inquire about the specific allocation of Ad Fund monies and the performance metrics used to evaluate the effectiveness of advertising and marketing efforts.