What amount was due to 1-800-GOT-JUNK? from Flywheel Accelerator USA Inc. in 2022?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
• $1,600 (2022 - $30) due from Flywheel Accelerator USA Inc.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, in 2022, Flywheel Accelerator USA Inc. owed 1-800-GOT-JUNK? $1,600. This figure is part of related party transactions and balances detailed in the financial statements. These transactions occur between 1-800-GOT-JUNK? and other entities under common control.
This type of related party transaction is typical for franchise systems, where the franchisor often has dealings with affiliated companies. It's important to note that the amounts due from related parties are unsecured, non-interest bearing, have no fixed terms of repayment, and are considered operating in nature.
As a prospective franchisee, it is important to understand the nature and extent of these related-party transactions, as they can impact the financial performance of 1-800-GOT-JUNK?. Reviewing the complete financial statements and asking the franchisor for clarification on these transactions is a crucial part of due diligence.