When calculating the average Gross Revenue figures per subterritory for 1-800-GOT-JUNK?, what is the initial step?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
The “per-subterritory” average, median, high, and low Gross Revenue figures were calculated by (i) first determining each franchisee’s average Gross Revenue per subterritory (dividing the Gross Revenue of the particular franchise by the number of subterritories owned by that franchise), and then (ii) using those results to calculate the overall per-subterritory average, and to determine the median, highest, and lowest per-subterritory performance.
Source: Item 19 — Financial Performance Representations (FDD pages 42–48)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the initial step in calculating the average Gross Revenue per subterritory involves determining each franchisee's average Gross Revenue per subterritory. This is achieved by dividing the Gross Revenue of the particular franchise by the number of subterritories owned by that franchise.
After determining each franchisee's average Gross Revenue per subterritory, the subsequent step involves using those results to calculate the overall per-subterritory average. This calculation also helps determine the median, highest, and lowest per-subterritory performance.
It is important to note that 1-800-GOT-JUNK? provides these per-subterritory figures because franchisees own different numbers of subterritories. For the U.S. outlets reported, the average number of subterritories owned is 21, with the fewest being 5 and the most being 89. The median number of subterritories owned is 17. This variation in subterritory ownership highlights the importance of considering per-subterritory performance in addition to overall franchise revenue.