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

According to the 2025 FDD, 1-800-GOT-JUNK? reported deferred revenue as part of its deferred income tax assets. As of December 31, 2024, the deferred revenue amount was $257,678. This figure represents revenue that 1-800-GOT-JUNK? has received but not yet earned, meaning the services or obligations related to that revenue have not been completed. This deferred revenue contributes to the overall deferred income tax assets of the company.

Deferred income tax assets arise from temporary differences between the book value of assets and liabilities for financial reporting and their corresponding values for income tax purposes. These assets are carried at their estimated net realizable value, which is determined by 1-800-GOT-JUNK?'s management based on factors like scheduled realization, projected future taxable income, and tax planning strategies. The carrying values are subject to change if management's estimates of taxable income during the carry-forward period are revised.

For a prospective 1-800-GOT-JUNK? franchisee, understanding deferred revenue and deferred income tax assets is crucial for assessing the financial health and stability of the franchisor. It provides insight into how 1-800-GOT-JUNK? manages its revenue recognition and tax obligations. While deferred revenue is a liability, the corresponding deferred income tax asset suggests that 1-800-GOT-JUNK? anticipates future taxable income to offset these deferred amounts, which is a normal accounting practice.