What does 'Gross Revenue' mean for 1-800-GOT-JUNK? franchisees, according to Item 19?

According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, Item 19 clarifies what is meant by "Gross Revenue" in the context of their financial performance representations. Specifically, Gross Revenue refers to the actual gross sales to consumers for products and services, less any taxes collected, and credits or refunds given in accordance with 1-800-GOT-JUNK?'s refund policy. This definition is important for prospective franchisees to understand because the financial performance data presented in Item 19 is based on this calculation.

It is important to note that the Gross Revenue figures presented do not reflect the costs of sales or operating expenses. These expenses must be deducted from the gross revenue to determine a franchisee's net income or profit. The FDD suggests that prospective franchisees may contact current or former franchisees listed in Exhibit A to gather more information about these costs.

1-800-GOT-JUNK? also provides additional context for how Gross Revenue is calculated for locations outside the U.S. For tables in Item 19, franchised businesses in Canada and Australia are included, with their gross revenue figures converted to U.S. dollars using the average exchange rate for the relevant calendar year. This is because these international franchisees operate businesses substantially similar to those in the U.S., with similar performance results.