What was the amount of withholding tax payable for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
$ 30,619,314 $ 28,425,889
Liabilities and Member’s Equity
Current liabilities: Accounts payable and accrued liabilities $ 3,802,470 $ 7,092,682 Payable to franchisees
3,457,538 4,516,725 Current portion of deferred revenue
483,541 473,059 Due to related parties 17,861,734 11,846,841 Deposits
50,000
Withholding tax payable
484,517 258,110
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 withholding tax payable as of May 31, 2025, was $484,517. This figure represents the amount 1-800-GOT-JUNK? owes to various tax authorities for taxes withheld from payments to employees, contractors, or other parties. This liability is a current liability, meaning it is expected to be paid within one year.
For a prospective franchisee, understanding the withholding tax payable is important because it reflects 1-800-GOT-JUNK?'s financial obligations and overall financial health. A significant increase in withholding tax payable could indicate changes in employment levels, compensation structures, or tax compliance practices. Franchisees should consider this figure in the context of 1-800-GOT-JUNK?'s total liabilities and assets to assess the company's financial stability.
It's also worth noting that the FDD includes comparative figures from previous periods, such as December 31, 2024, when the withholding tax payable was $258,110. Comparing these figures can reveal trends and potential areas of concern or improvement. A prospective franchisee should investigate any significant fluctuations and seek clarification from 1-800-GOT-JUNK? regarding the reasons for these changes.
In summary, the withholding tax payable is a key indicator of 1-800-GOT-JUNK?'s financial obligations and tax management practices. Franchisees should carefully review this figure, along with other financial data in the FDD, to gain a comprehensive understanding of the company's financial health and stability.