What was the amount due to RBDS 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 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the amounts due to RBDS (Rubbish Boys Disposal Service Inc.) are detailed in the financial statements as related party balances. In 2023, 1-800-GOT-JUNK? owed RBDS $8,233,500. Additionally, $1,456,290 was included in accounts payable and accrued liabilities, also due to RBDS. Therefore, the total amount due to RBDS in 2023 was the sum of these two amounts.
In 2022, the amount due to RBDS was $6,226,878, with an additional $451,434 included in accounts payable and accrued liabilities. These payables are with companies under common control. The related party payable of $8,233,500 in 2023 and $6,226,878 in 2022 due to RBDS is unsecured, has no fixed terms of repayment, and bears interest at 5% per annum.
Prospective franchisees should understand the financial relationships 1-800-GOT-JUNK? has with related parties, such as RBDS, as these transactions can impact the company's financial performance and stability. Understanding the nature and terms of these related party transactions is crucial for assessing the overall financial health of 1-800-GOT-JUNK?.