What was the amount of cash for 1-800-GOT-JUNK? as of December 31, 2024?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
3,944,494 (2,631,261)
Investing: Purchase of equipment
(80,733)
(93,423)
Increase (decrease) in cash 3,863,761 (2,724,684)
Cash, beginning of year 2,588,388 5,313,072
Cash, end of year $ 6,452,149 $ 2,588,388
See accompanying notes to consolidated financial statements. 1-800-GOT-JUNK? LLC Notes to Consolidated Financial Statements (Amounts expressed in United States dollars, unless otherwise indicated)
Years ended December 31, 2023 and 2022
- Nature of operations: 1-800-GOT-JUNK? LLC (the “LLC”) was incorporated under the laws of the State of Delaware as a limited liability company. The LLC was created to sell franchise rights for the operation of businesses that collect and dispose of non-hazardous refuse in the United States of America. The LLC is the master franchisor in the United States for 1-800-GOT-JUNK?. As at December 31, 2023, the Company had 149 (2022 - 141) operating franchises and sold 8 (2022 - 6) franchises during the year then ended. The franchises sold included both 8 operating and nil non-operating franchises that have franchise agreements signed as at the year-then ended.
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 amount of cash the company had at the end of 2024 was $6,452,149. This figure is derived from the consolidated statements of cash flows, which are audited by an independent auditor. The statement provides a summary of the cash inflows and outflows for 1-800-GOT-JUNK? over the course of the year.
For a prospective franchisee, this cash balance can be seen as an indicator of the financial health and stability of 1-800-GOT-JUNK?. A strong cash position suggests that the company is managing its finances effectively and has sufficient resources to meet its obligations and invest in future growth. It also implies that 1-800-GOT-JUNK? has the ability to support its franchisees during challenging economic times.
However, it is important to note that a single year's cash balance is just one piece of the financial picture. A prospective 1-800-GOT-JUNK? franchisee should also review the company's balance sheets, income statements, and statements of changes in member's equity to get a more complete understanding of its financial performance and position. Additionally, it would be prudent to compare these figures to those of other similar franchise systems to benchmark 1-800-GOT-JUNK?'s financial health against its peers.
Furthermore, the FDD includes notes to the consolidated financial statements, which provide additional details and explanations of the figures presented. These notes can be helpful in understanding the underlying assumptions and accounting policies used in preparing the financial statements. Reviewing these notes can provide a more nuanced understanding of 1-800-GOT-JUNK?'s financial condition.