What was the amount due to 1-800-GOT-JUNK? Commercial Services (Canada), Inc. by 1-800-GOT-JUNK? in 2023, and what was the amount due in 2022?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the amounts due to related parties are detailed in the financial statements. Specifically, the amount due to 1-800-GOT-JUNK? Commercial Services (Canada), Inc. was $643,332 in 2023 and $599,965 in 2022. These figures represent the outstanding balances between 1-800-GOT-JUNK? LLC and its Canadian commercial services affiliate. These amounts are part of the broader category of 'Due to related parties' which also includes balances with other affiliated entities such as RBDS Rubbish Boys Disposal Service Inc. and 1-800-GOT-JUNK? (Australia), Pty Ltd. These balances reflect intercompany transactions and financial obligations between 1-800-GOT-JUNK? and its related entities.

These related party balances are important for a prospective franchisee to understand because they provide insight into the financial relationships between 1-800-GOT-JUNK? and its affiliates. The amounts due to related parties are typically unsecured, non-interest bearing, and have no fixed terms of repayment, and are considered operating in nature. This means that these balances are part of the normal course of business operations between the companies. However, it is important to note that the related party payable to RBDS is an exception, as it bears interest at 5% per annum and is also unsecured with no fixed terms of repayment.

Understanding these related party transactions and balances can help a franchisee assess the overall financial health and stability of 1-800-GOT-JUNK?. It is also important to note that these transactions are subject to transfer pricing agreements, which are designed to ensure that the fees charged between related parties are similar to what would be charged by independent third parties. This helps to prevent any potential manipulation of financial results through related party transactions. A prospective franchisee should review these related party transactions and balances carefully and ask 1-800-GOT-JUNK? for more information if they have any questions or concerns.

In summary, the amounts due to 1-800-GOT-JUNK? Commercial Services (Canada), Inc. in 2023 and 2022 represent a portion of the overall financial obligations between 1-800-GOT-JUNK? and its related entities. These balances are typically unsecured, non-interest bearing, and have no fixed terms of repayment, and are considered operating in nature. A prospective franchisee should carefully review these transactions and balances to assess the overall financial health and stability of 1-800-GOT-JUNK? and its related entities.