What were the management and administration fees for 1-800-GOT-JUNK? for the period ended May 31, 2024?
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
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 management and administration fees for the period ended May 31, 2024, were $5,687,420. This figure reflects the expenses 1-800-GOT-JUNK? incurred for managing and administering the franchise system during that time. These fees are part of the overall expenses detailed in the consolidated statements of net income and comprehensive income.
For a prospective franchisee, understanding the management and administration fees is crucial as it provides insight into the operational costs of the franchisor. While franchisees do not directly pay these fees, they are an indicator of how 1-800-GOT-JUNK? manages its resources and supports its franchise network. Efficient management and administration can lead to better support services, training programs, and overall system improvements, which can indirectly benefit franchisees.
It's important to note that these fees are distinct from other fees that franchisees might pay, such as royalty fees, ad fund fees, or franchise fees. The management and administration fees represent 1-800-GOT-JUNK?'s internal operational costs. Franchisees should consider these figures in the context of the overall financial health and stability of the franchisor, as detailed in the financial statements.
Reviewing these fees over different periods, such as comparing the $5,687,420 for the period ended May 31, 2024, to the $6,039,630 for the period ended May 31, 2025, can reveal trends in 1-800-GOT-JUNK?'s operational efficiency and cost management. A significant increase in these fees without a corresponding increase in revenue or franchisee support could be a point of concern for potential franchisees.