Does 1-800-GOT-JUNK? audit the gross revenue data supplied by its franchisees?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
The following financial performance information is presented in three parts, and contains historical information on the Gross Revenue results of specified 1-800-GOT-JUNK? franchisees (including our Flywheel affiliates that own and operate outlets under franchise agreements). The information is compiled from data supplied by 1-800-GOT-JUNK? franchisees, which we have not audited. Unless otherwise specified, “Gross Revenue” means the amount of actual gross sales to consumers for products and services less taxes collected and credits or refunds given in accordance with our refund policy. For some tables in this Item 19, we include franchised businesses in Canada and Australia because these Canadian and Australian franchisees operate businesses that are substantially similar to those in the U.S., with substantially similar performance results and no material differences between the data of the three groups other than the currency.
Source: Item 19 — Financial Performance Representations (FDD pages 42–48)
What This Means (2025 FDD)
According to the 2025 FDD, 1-800-GOT-JUNK? does not audit the gross revenue data supplied by its franchisees. The financial performance information disclosed in Item 19 is compiled from data reported by 1-800-GOT-JUNK? franchisees.
This means that the revenue figures presented, such as the $479,673,717 in gross revenue reported by United States franchisees in 2024, are based on unverified self-reporting. While 1-800-GOT-JUNK? provides this data for potential franchisees to evaluate possible financial performance, it's important to recognize that these figures have not been independently checked for accuracy.
Prospective franchisees should bear in mind that these figures are unaudited when assessing the potential financial performance of a 1-800-GOT-JUNK? franchise. While 1-800-GOT-JUNK? will make substantiation of the data available upon reasonable request, it remains the franchisee's responsibility to conduct thorough due diligence and possibly seek professional financial advice to evaluate the reliability of the data.