What was the amount of retained earnings for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
1-800-GOT-JUNK? LLC Consolidated Statements of Changes in Member’s Equity (Unaudited - Expressed in United States dollars)
For the period ended May 31, 2025
Total
Member’s Retained member’s
equity earnings equity
Balance, December 31, 2023 $ $ 3,930,184 $ 3,930,185
Net loss and comprehensive loss
(182,347) (182,347)
Balance, December 31, 2024
3,747,837
3,747,838
Net income and comprehensive income
288,999 288,999
Balance, May 31, 2025 $ $ 4,036,836 $ 4,036,837
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 consolidated statement of changes in member's equity shows the retained earnings balance as of May 31, 2025. The retained earnings as of this date was $4,036,836. This reflects the accumulation of net income and comprehensive income, which totaled $288,999 during the period, added to the balance from December 31, 2024.
Retained earnings represent the cumulative net earnings or losses of 1-800-GOT-JUNK? that have been reinvested back into the business rather than distributed to its member. It's a key indicator of the company's financial health and its ability to fund future growth or weather economic downturns. A positive and growing retained earnings balance generally suggests that the company is profitable and managing its finances effectively.
For a prospective 1-800-GOT-JUNK? franchisee, this figure provides insight into the financial stability and profitability of the franchisor. While retained earnings are not directly accessible to franchisees, a strong retained earnings position for the franchisor can translate into better support, resources, and brand recognition, all of which can positively impact the franchisee's business. It also suggests that 1-800-GOT-JUNK? is likely to be a stable and reliable partner for the long term.