For what purpose are the payments from suppliers made to 1-800-GOT-JUNK?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently negotiate purchase arrangements with some suppliers for the benefit of our franchisees. We may receive rebates, promotional allowances, discounts or other payments or benefits from designated suppliers as a result of the purchases made by 1-800-GOT-JUNK? franchisees. Currently, the amount of payments are determined at the discretion of the suppliers, and are made in sponsorship of our annual conference. In our fiscal year ended December 31, 2024, certain suppliers made payments to us in the amount of $130,692 for such sponsorships.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 21–23)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, 1-800-GOT-JUNK? may receive payments from designated suppliers due to purchases made by its franchisees. These payments can take the form of rebates, promotional allowances, discounts, or other benefits. As of the fiscal year ended December 31, 2024, the amount of these payments is determined at the discretion of the suppliers.
Currently, these supplier payments are specifically used to sponsor 1-800-GOT-JUNK?'s annual conference. In the fiscal year that ended December 31, 2024, 1-800-GOT-JUNK? received $130,692 from suppliers for these sponsorships.
For a prospective franchisee, this means that 1-800-GOT-JUNK? actively negotiates with suppliers for the benefit of its franchisees, and may receive financial benefits from these suppliers. These benefits are then used to offset the costs of the annual conference. While the payments are not directly passed on to franchisees, they contribute to the overall financial health of the 1-800-GOT-JUNK? system and help fund events that may benefit franchisees through networking and training opportunities.