In the 1-800-GOT-JUNK? financial performance representation, what does the 'number of franchises' column indicate?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
The number of franchises column includes the number used to calculate the average for that subset.
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 'number of franchises' column in the financial performance representation indicates the number of franchises used to calculate the average for that specific subset of data. This means that when 1-800-GOT-JUNK? presents average gross revenue figures, the 'number of franchises' column specifies how many individual franchise operations contributed data to that average. This is important because it gives prospective franchisees context about the sample size used to generate the average revenue figures. Averages based on a larger number of franchises may be more representative than those based on only a few.
For a prospective 1-800-GOT-JUNK? franchisee, understanding the number of franchises behind the averages is crucial for assessing the reliability and relevance of the financial performance data. For example, if an average is calculated from only one or two franchises, it may not be indicative of the performance a new franchisee can expect. Conversely, an average derived from a larger pool of franchises might provide a more stable and predictable benchmark. This information helps potential franchisees evaluate the range of performance across different franchise locations and operational periods.
Furthermore, the 1-800-GOT-JUNK? FDD provides additional context by breaking down franchisee performance based on the number of years they have been operating. This allows potential franchisees to see how revenue trends evolve over time. The document also includes data from both U.S. franchisees and DBA (affiliate-owned) locations, providing a comprehensive view of the 1-800-GOT-JUNK? system's financial performance. By considering these factors in conjunction with the number of franchises contributing to each average, prospective franchisees can make more informed decisions about their investment.