What were the prepaid expenses for 1-800-GOT-JUNK? as of May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
May 31, 2025 and December 31, 2024
May 31 December 31
Notes
Assets
Current assets: Cash $ 11,635,584 $ 8,886,128 Short-term investment 103,622 102,578 Accounts receivable (net of allowance for credit losses: May 31, 2025 - $106,092 (2024 - $106,029)) 11,313,651 13,221,199 Prepaid expenses
82,279 319,453
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 company's prepaid expenses as of May 31, 2025, were $82,279. This figure reflects the value of services or goods that 1-800-GOT-JUNK? has paid for in advance but not yet fully consumed or utilized. Prepaid expenses are considered current assets on the company's balance sheet, indicating their expected use within one year.
For a prospective 1-800-GOT-JUNK? franchisee, understanding the level of prepaid expenses can offer insights into the company's operational practices and financial management. Prepaid expenses might include items such as insurance premiums, rent, or advertising costs that have been paid upfront. The amount of prepaid expenses can fluctuate depending on the timing of payments and the nature of the services or goods acquired.
It's important to note that the financial statements included in the FDD are unaudited, as indicated in Exhibit E. This means that the figures have not been independently verified by a certified public accountant. While the FDD provides a snapshot of 1-800-GOT-JUNK?'s financial position, prospective franchisees should consider consulting with a financial advisor to conduct their own due diligence and assess the financial health of the company.