What was the amount of total expenses for 1-800-GOT-JUNK? for the period ended May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
See accompanying notes to consolidated financial statements.
Approved on behalf of the Member:
Director 1-800-GOT-JUNK? LLC Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) (Expressed in United States dollars)
Years ended December 31, 2023 and 2022
Notes
Revenue: Royalty fees
$ 37,284,614 $ 37,530,066 Sales Centre fees 28,074,666 28,255,004 Ad Fund fees 9,334,914 9,289,262 Franchise fees 904,973 743,143 Other 218,195 49,303
75,817,362 75,866,778
Expenses: Sales Centre 28,074,666 28,255,004 Licensing fees 20,798,903 21,519,775 Management and administration fees 15,074,337 15,725,072 Ad Fund 9,334,914 9,289,262 Salaries and benefits
644,357 430,490 Accounting and legal
630,775 278,287 Bad debt (recovery of)
533,135 (155,400) Interest 358,079 331,554 Insurance
200,831 173,650 Field operations
95,446 120,009 Bank charges
51,137 42,533 State franchise tax
37,674 41,237 Amortization
27,006
Office and general
3,126 5,200
75,864,386 76,056,673
Loss before income taxes (47,024) (189,895)
Income tax (recovery) expense: Current 109,747 14,694 Deferred (230,622) (32,373)
(120,875) (17,679)
Net income (loss) and comprehensive income (loss) $ 73,851 $ (172,216)
See accompanying notes to the consolidated financial statements. 1-800-GOT-JUNK? LLC Consolidated Statements of Changes in Member’s Equity (Expressed in United States dollars)
Years ended December 31, 2023 and 2022
Total
Member’s Retained member’s
equity earnings equity
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 FDD, 1-800-GOT-JUNK?'s consolidated statement of net income (loss) and comprehensive income (loss) does not provide a single line item for total expenses for the period ended May 31, 2025. Instead, it lists various expense categories for the years ended December 31, 2023, and 2022. These include Sales Centre expenses ($28,074,666 and $28,255,004 respectively), licensing fees ($20,798,903 and $21,519,775), management and administration fees ($15,074,337 and $15,725,072), and Ad Fund expenses ($9,334,914 and $9,289,262). Other expenses listed are salaries and benefits, accounting and legal, bad debt (recovery of), interest, insurance, field operations, bank charges, state franchise tax, amortization, and office and general.
To determine the total expenses for the period ended May 31, 2025, a prospective 1-800-GOT-JUNK? franchisee would need to sum all the individual expense line items provided for a comparable period. However, the document only provides a breakdown of expenses for the years ended December 31, 2023, and 2022, not for the specific period ending May 31, 2025. The FDD includes a consolidated statement of cash flows for the period ended May 31, 2025, but this statement does not detail the individual expense items, focusing instead on cash flow activities.
Therefore, a potential franchisee should request a detailed expense report from 1-800-GOT-JUNK? that covers the period ending May 31, 2025, to fully understand the financial performance and operational costs of the franchisor. This information is crucial for making an informed investment decision.