What was the interest expense for 1-800-GOT-JUNK? for the period ended May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
Salaries and benefits 601,310 408,311 Interest 303,956 176,377
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 interest expense for the period ended May 31, 2025, was $303,956. For comparison, the interest expense for the same period in the previous year, May 31, 2024, was $176,377.
This figure represents the cost 1-800-GOT-JUNK? incurred for borrowing money during that period. Interest expenses can arise from various sources, such as loans, lines of credit, or other forms of debt financing. Monitoring interest expenses is important for franchisees to understand the financial health and profitability of 1-800-GOT-JUNK?.
It's also worth noting that a significant portion of 1-800-GOT-JUNK?'s liabilities are related to transactions with related parties. As detailed in the notes, the related party payable as of May 31, 2025, was $17,164,686 due to RBDS, bearing interest at 5% per annum. This related-party debt contributes to the overall interest expense of the company.