What was the amount of current liabilities for 1-800-GOT-JUNK? as of December 31, 2024?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the company's current liabilities as of December 31, 2023, totaled $27,578,213. This figure is comprised of several components, including accounts payable and accrued liabilities, payable to franchise partners, the current portion of deferred revenue, amounts due to related parties, deposits, and withholding tax payable.

For a prospective franchisee, understanding the composition and magnitude of these liabilities is crucial. Accounts payable and accrued liabilities represent short-term obligations to suppliers and other creditors. The payable to franchise partners likely reflects amounts owed to franchisees, potentially from revenue sharing or other agreements. Deferred revenue typically arises when 1-800-GOT-JUNK? receives payments for services or goods that have not yet been delivered or earned. Amounts due to related parties signify transactions with affiliated entities, which require careful scrutiny to ensure fair value and avoid conflicts of interest.

The presence of contingent liabilities, as noted in the document, also warrants attention. While management believes that adequate provisions have been made for these potential obligations, their ultimate resolution could impact 1-800-GOT-JUNK?'s financial position. Franchisees should inquire about the nature and potential impact of these contingent liabilities to fully assess the financial health of the franchisor. Reviewing the trend in current liabilities over time, as well as comparing them to industry benchmarks, can provide further insights into 1-800-GOT-JUNK?'s financial stability and its ability to support its franchisees.