What was the amount due to related parties for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
14,013 $ 3,473,487
May 31 December 31
Due to related parties: RBDS Rubbish Boys Disposal Service Inc. $ 17,164,686 $ 11,180,109 1-800-GOT-JUNK? Commercial Services (Canada), Inc. 691,850 650,115 1-800-GOT-JUNK? (Australia) Pty Ltd
16,617 WOW 1 DAY PAINTING LLC 4,110
Flywheel Accelerator USA Inc.
0766143 BC Ltd.
$ 17,861,734 $ 11,846,841
Also included in accounts payable and accrued liabilities as of May 31, 2025 are $2,317,937 (2024 - $2,384,078) due to RBDS. The related party receivables and payables are all with companies that are under common control. 1-800-GOT-JUNK? LLC Notes to Consolidated Financial Statements (Unaudited - Tabular amounts expressed in United States dollars, unless otherwise indicated)
For the period ended May 31, 2025 and 2024
- Related party balances and transactions (continued): (a) Related party balances (continued): The related party payable as of May 31, 2025 is $17,164,686 (December 31, 2024 - $11,180,109) 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., 1- 800-GOT-JUNK? (Australia), Pty Ltd., 1-800-GOT-JUNK?
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 total amount due to related parties as of May 31, 2025, was $17,861,734. This amount is broken down into several categories, with the largest portion, $17,164,686, due to RBDS Rubbish Boys Disposal Service Inc. Other amounts include $691,850 due to 1-800-GOT-JUNK? Commercial Services (Canada), Inc. There were no amounts due to 1-800-GOT-JUNK? (Australia) Pty Ltd, WOW 1 DAY PAINTING LLC, Flywheel Accelerator USA Inc., and 0766143 BC Ltd. as of this date.
It's important to note that an additional $2,317,937 was included in accounts payable and accrued liabilities as due to RBDS as of May 31, 2025. The FDD specifies that the related party receivables and payables are all with companies under common control. This indicates that 1-800-GOT-JUNK? engages in transactions with affiliated entities, which is a common practice in franchise systems.
The payable of $17,164,686 due to RBDS is unsecured, bears interest at 5% per annum, and has no fixed terms of repayment. The remaining amounts due to related parties are unsecured, non-interest bearing, have no fixed terms of repayment, and are considered operating in nature. This distinction in terms highlights the specific financial arrangements 1-800-GOT-JUNK? has with its parent company, RBDS, compared to other related entities.
Prospective franchisees should carefully review these related party transactions to understand the financial relationships between 1-800-GOT-JUNK? and its affiliates. Understanding these relationships can provide insights into the cost structure and potential obligations of the franchise.