What were the prepaid expenses for 1-800-GOT-JUNK? as of December 31, 2024?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2023 and 2022
Notes
Assets
Current assets: Cash $ 6,452,149 $ 2,588,388 Short-term investment 100,578 100,175 Accounts receivable (net of allowance for doubtful accounts: 2023 - $690,491 (2022 - $153,943)) 21,204,821 15,175,147 Due from related parties 2,010,218 Prepaid expenses
109,478 5,000 Income taxes recoverable
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 consolidated balance sheets show the company's prepaid expenses as of December 31, 2023, were $109,478 and as of December 31, 2022, were $5,000.
Prepaid expenses represent payments 1-800-GOT-JUNK? has made for goods or services that it will receive in the future. These are considered assets on the balance sheet because they represent future economic benefits for the company. Examples of prepaid expenses could include insurance premiums, rent, or software licenses paid in advance.
For a prospective franchisee, understanding the level of prepaid expenses can offer insights into 1-800-GOT-JUNK?'s operational practices and financial management. It can also be helpful to compare these figures with those of other similar franchise systems to assess whether 1-800-GOT-JUNK? is managing its expenses efficiently. Note that the FDD only provides data through December 31, 2023, and does not include the prepaid expenses as of December 31, 2024.