What does 'Gross Revenue' mean for 1-800-GOT-JUNK? franchisees, as defined in Item 19?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
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 1-800-GOT-JUNK? Franchise Disclosure Document, 'Gross Revenue' is defined as the actual gross sales to consumers for products and services, less any taxes collected, and credits or refunds given in accordance with their refund policy. This definition is important for prospective franchisees as it sets the baseline for understanding the financial performance representations provided in Item 19 of the FDD. The financial performance figures do not reflect the costs of sales or operating expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit. Franchisees or former franchisees, listed in Exhibit A of this Franchise Disclosure Document, may be one source of this information.
1-800-GOT-JUNK? provides historical financial performance information based on data supplied by its franchisees, which has not been audited by the company. This data includes revenue from franchised businesses in Canada and Australia, converted to U.S. dollars using specific average exchange rates for each calendar year. For example, the 2024 average exchange rate of 0.7302 was used for Canadian dollars and 0.6595 for Australian dollars. These conversions are important because they allow for a standardized comparison of financial performance across different regions.
It is important to note that the financial performance figures presented in the FDD do not reflect the costs of sales or operating expenses. These expenses must be deducted from the gross revenue to determine net income or profit. 1-800-GOT-JUNK? emphasizes that individual results may vary, and there is no assurance that a franchisee will achieve the same level of sales. Prospective franchisees should also be aware that 1-800-GOT-JUNK? does not authorize its employees or representatives to make any financial performance representations beyond what is included in Item 19. If a potential franchisee receives any other financial performance information, they are advised to report it to the franchisor's management, the Federal Trade Commission, and the appropriate state regulatory agencies.