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

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the deferred revenue as of December 31, 2024, was $257,678. This figure is part of the deferred income tax assets reported in the consolidated financial statements. It is important to note that this deferred revenue contributes to the overall deferred income tax assets, which totaled $2,213,502 as of the same date.

Deferred revenue typically arises when 1-800-GOT-JUNK? receives payments for services or goods that have not yet been provided or delivered. In the context of a franchise, this could include initial franchise fees, renewal fees, or territory expansion fees that are collected upfront but recognized as revenue over the term of the franchise agreement. The deferred income tax asset reflects the future tax benefits associated with these deferred revenues.

For a prospective 1-800-GOT-JUNK? franchisee, understanding deferred revenue is crucial because it impacts the company's financial health and how revenue is recognized. The franchisor's accounting policies, as detailed in the FDD, explain how these revenues are treated. This can affect the reported profitability and financial stability of 1-800-GOT-JUNK?, which in turn could influence the support and services available to franchisees.

It is also important to note that the deferred income tax assets are carried at their estimated net realizable value, which is subject to change based on management's estimates of future taxable income. This means that the actual value of these assets could fluctuate, impacting the overall financial position of 1-800-GOT-JUNK?. Therefore, a potential franchisee should consider these factors when evaluating the financial statements provided in the FDD.