What was the amount due to related parties for 1-800-GOT-JUNK? as of December 31, 2024?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, as of December 31, 2024, the total amount due to related parties was $11,846,841. This amount is comprised of several debts to related entities, including $11,180,109 due to RBDS Rubbish Boys Disposal Service Inc., $650,115 due to 1-800-GOT-JUNK? Commercial Services (Canada), Inc., and $16,617 due to 1-800-GOT-JUNK? (Australia) Pty Ltd. These figures represent the financial obligations 1-800-GOT-JUNK? had to its affiliated companies at the close of 2024.

It's important to note that the payable to RBDS Rubbish Boys Disposal Service Inc. 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 is significant because the interest-bearing debt to RBDS could impact 1-800-GOT-JUNK?'s profitability and cash flow, while the other payables are more flexible and operating-related.

For a prospective franchisee, understanding these related party transactions is crucial. It provides insight into the financial relationships 1-800-GOT-JUNK? has with its affiliates and how these relationships might affect the company's financial stability. While related party transactions are common, the amounts and terms can vary significantly, so it's essential to assess whether these arrangements are typical and reasonable. A potential franchisee should seek clarification from 1-800-GOT-JUNK? regarding the nature of these transactions and their potential impact on the franchise system.