What was the amount due to 1-800-GOT-JUNK? (Australia), Pty Ltd. by 1-800-GOT-JUNK? in 2023, and what was the amount due in 2022?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Years ended December 31, 2023 and 2022
- Related party transactions and balances (continued): Due from related parties include: • $1,832,287 (2022 – nil) due from O2E Brands Inc. • $158,906 (2022 - nil) due from Shack Shine Home Services LLC. • $11,439 (2022 - nil) due from WOW 1 DAY PAINTING LLC. • $5,986 (2022 - nil) due from WOW 1 DAY PAINTING Inc. • $1,600 (2022 - $30) due from Flywheel Accelerator USA Inc. Due to related parties include: • $8,233,500 (2022 - $6,226,878) due to RBDS. • $643,332 (2022 - $599,965) due to 1-800-GOT-JUNK? Commercial Services (Canada), Inc. • $34,107 (2022 - nil) due to 1-800-GOT-JUNK? (Australia), Pty Ltd. • nil (2022 - $11,059) due to O2E Brands Inc. • nil (2022 - $17,135) due to Shack Shine Home Services LLC. • nil (2022 - $5,331) due to Shack Shine Home Services Inc. Also included in accounts payable and accrued liabilities are $1,456,290 (2022 - $451,434) due to RBDS. The related party receivables and payables are all with companies that are under common control. The related party payable of $8,233,500 (2022 - $6,226,878) due to RBDS is unsecured, has no fixed terms of repayment, and bears interest at 5% per annum. The remaining amounts included in accounts payable and accrued liabilities and related party balances from/to O2E Brands Inc., Shack Shine Home Services LLC, Shack Shine Home Services Inc., WOW 1 DAY PAINTING LLC, WOW 1 DAY PAINTING INC., Flywheel Accelerator USA Inc., RBDS, 1-800-GOT-JUNK? Commercial Services (Canada), Inc., and 1-800-GOT- JUNK? (Australia), Pty Ltd. are unsecured, non-interest bearing, have no fixed terms of repayment, and are considered operating in nature.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, the amount due to 1-800-GOT-JUNK? (Australia), Pty Ltd. by 1-800-GOT-JUNK? was $34,107 in 2023. In 2022, the amount due to 1-800-GOT-JUNK? (Australia), Pty Ltd. was nil.
These amounts reflect balances between 1-800-GOT-JUNK? and its Australian counterpart, indicating financial transactions or obligations between the two related entities. These balances are unsecured, non-interest bearing, have no fixed terms of repayment, and are considered operating in nature.
Prospective franchisees should be aware of these related-party transactions, as they provide insight into the financial relationships within the 1-800-GOT-JUNK? network. Understanding these relationships can help a franchisee assess the overall financial health and stability of the 1-800-GOT-JUNK? organization.