What was the amount of interest accrued for due to related parties for 1-800-GOT-JUNK? for the period ended May 31, 2024?

According to the 2025 FDD, for the period ended May 31, 2024, 1-800-GOT-JUNK? accrued $178,974 in interest due to related parties. This figure reflects the interest accrued on outstanding balances owed to entities related to 1-800-GOT-JUNK?.

Specifically, this interest relates to balances with related parties. The FDD notes that 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 other related entities are unsecured, non-interest bearing, have no fixed terms of repayment, and are considered operating in nature.

This indicates that a significant portion of the interest expense is tied to the 5% interest on the amount due to RBDS (Rubbish Boys Disposal Service Inc.). A prospective franchisee should be aware of these related-party transactions, as they can impact the company's financial performance and cash flow. Understanding the terms of these related-party payables and the associated interest rates is crucial for assessing the financial health of 1-800-GOT-JUNK?.

It's important to note that related party transactions are common in franchise systems, but franchisees should carefully review these transactions to ensure they are conducted at arm's length and are fair to all parties involved. Further due diligence into the nature of the related parties and the specific agreements governing these transactions is advisable for any potential 1-800-GOT-JUNK? franchisee.