What was the amount of deposits listed as a current 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
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 deposits listed as a current liability as of May 31, 2025, amounted to $50,000. This figure is part of the consolidated balance sheets included in the financial statements. These financial statements offer a snapshot of 1-800-GOT-JUNK?'s financial position at a specific point in time, reflecting its assets, liabilities, and equity. The inclusion of deposits as a current liability indicates obligations that 1-800-GOT-JUNK? owes to others, which are expected to be settled within a year.
For a prospective franchisee, understanding the liabilities of 1-800-GOT-JUNK? is crucial because it provides insight into the company's financial stability and its ability to meet its short-term obligations. A higher amount of current liabilities compared to current assets might raise concerns about the company's liquidity. However, it's essential to analyze the nature of these liabilities and the overall financial health of the company before drawing conclusions.
The deposits could represent various obligations, such as security deposits from franchisees or customers. It is important to note that the financial statements are unaudited as of May 31, 2025. Franchisees should consult with a financial advisor to fully understand the implications of these figures and how they relate to the overall financial performance and stability of 1-800-GOT-JUNK?.