What amount was due to 1-800-GOT-JUNK? from O2E Brands Inc. in 2022?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
rom related parties include: • $1,832,287 (2022 – nil) due from O2E Brands Inc. • $158,906 (2022 - nil) due from Shack Shine Home Services LLC.
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, in 2022, $11,059 was due to O2E Brands Inc., not from them. Conversely, $1,832,287 was due from O2E Brands Inc. to 1-800-GOT-JUNK? LLC. These amounts reflect balances between related parties, meaning companies under common control. These balances are unsecured, non-interest bearing, have no fixed terms of repayment, and are considered operating in nature.
For a prospective franchisee, understanding these related-party transactions is crucial. It reveals the financial interactions between 1-800-GOT-JUNK? and its affiliated companies. The fact that these balances are unsecured and non-interest bearing suggests a certain level of financial integration and reliance within the O2E Brands network.
It's important to note that while $1,832,287 was due from O2E Brands Inc. to 1-800-GOT-JUNK? LLC, no amount was due to O2E Brands Inc. from 1-800-GOT-JUNK? LLC. This distinction is important for understanding the direction of financial obligations within the related-party structure. A potential franchisee should investigate the nature of these transactions to assess the financial stability and interdependence of the related entities.
Prospective franchisees should seek clarification from 1-800-GOT-JUNK? regarding the specific nature of these related-party transactions, the reasons for the outstanding balances, and the potential impact on the franchisee's business operations. Understanding these relationships can provide a clearer picture of the overall financial health and stability of the 1-800-GOT-JUNK? franchise system.