What was the amount of deferred revenue listed as a liability for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
$ 30,619,314 $ 28,425,889
Liabilities and Member’s Equity
Current liabilities: Accounts payable and accrued liabilities $ 3,802,470 $ 7,092,682 Payable to franchisees
3,457,538 4,516,725 Current portion of deferred revenue
483,541 473,059 Due to related parties 17,861,734 11,846,841 Deposits
50,000
Withholding tax payable
484,517 258,110
26,139,800 24,187,417
Deferred revenue 442,677 490,634
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 company had two types of deferred revenue listed as liabilities on its consolidated balance sheets. As of May 31, 2025, the current portion of deferred revenue was $483,541, and the deferred revenue was $442,677.
Deferred revenue represents payments 1-800-GOT-JUNK? has received for services or goods that have not yet been provided or delivered. In the case of a franchise, this often relates to initial franchise fees or other upfront payments where 1-800-GOT-JUNK? still has an obligation to fulfill. The "current portion" represents the amount of deferred revenue expected to be recognized within the next year, while the remaining deferred revenue is expected to be recognized over a longer period.
For a prospective 1-800-GOT-JUNK? franchisee, these figures provide insight into the company's financial obligations and how it manages its revenue recognition. It's important to understand how deferred revenue impacts 1-800-GOT-JUNK?'s financial stability and its ability to meet its obligations to franchisees. Reviewing these figures over time can also reveal trends in 1-800-GOT-JUNK?'s sales and service delivery.