What was the insurance expense for 1-800-GOT-JUNK? for the period ended May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
May 31 May 31
Notes
Revenue: Royalty fees
$ 17,877,954 $ 15,011,197 Sales Centre fees
13,515,783 10,244,752 Ad Fund fees
4,504,472 3,816,955 Franchise fees
139,476 183,562 Other
94,500 89,911
36,132,185 29,346,377
Expenses: Sales Centre 13,515,783 10,244,752 Licensing fees 10,400,913 8,365,599 Management and administration fees 6,039,630 5,687,420 Ad Fund 4,504,472 3,440,748 Salaries and benefits
601,310 408,311 Interest 303,956 176,377 Insurance
143,751 100,414 Field operations
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the insurance expense for the period ending May 31, 2025, was $143,751. For comparison, the insurance expense for the same period in 2024 was $100,414. This information is derived from the company's unaudited consolidated statements of net income and comprehensive income.
For a prospective franchisee, understanding these figures is crucial for financial planning. Insurance costs are a significant operational expense, and knowing the franchisor's historical expenses can help in forecasting potential costs for a new franchise. It's important to note that these figures represent the franchisor's expenses and may not directly reflect the insurance costs a franchisee will incur, as those costs can vary based on location, coverage levels, and other factors.
It would be prudent for potential 1-800-GOT-JUNK? franchisees to inquire about the types of insurance coverage the franchisor requires, recommended insurance providers, and any group insurance plans that might be available to reduce costs. Additionally, understanding the factors that could influence insurance premiums in their specific operating area is essential for accurate financial projections. Reviewing these figures in the context of the complete financial statements will provide a more comprehensive understanding of 1-800-GOT-JUNK?'s financial performance.