What was the intangible asset value for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
- Intangible assets: As of May 31, 2025, the intangible asset is not yet in use:
May 31 December 31
Accumulated Net book Net book
Cost amortization value value
Diversion reporting
application $ 89,680 $
$ 89,680 $ 40,745
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, as of May 31, 2025, the net book value for the diversion reporting application, which is considered an intangible asset, was $89,680. The original cost of the asset was $89,680, and the accumulated amortization was zero at that time. This asset was not yet in use as of this date.
For a prospective franchisee, this indicates that 1-800-GOT-JUNK? is investing in technology, specifically a diversion reporting application. The fact that the asset is not yet in use suggests it is still under development. The cost of this application is being capitalized as an intangible asset on 1-800-GOT-JUNK?'s balance sheet.
It's important to note that the value of intangible assets can change over time due to amortization or impairment. In this case, because the asset was not yet in use, no amortization had been recorded as of May 31, 2025. The 1-800-GOT-JUNK? FDD also states that the intangible asset was not yet in use as of December 31, 2024, when the net book value was $40,745.
Prospective franchisees might want to inquire about the nature of this diversion reporting application, its intended use, and its potential impact on their operations. Understanding the purpose and benefits of this technology could be a key factor in evaluating the franchise opportunity.