What was the total amount of 360 Painting's deferred revenue, noncurrent, in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | 722,074 | $ 900,157 |
| $ | ||
| Accounts receivable, net | 2,838,106 | 2,173,026 |
| Prepaid expenses and other current assets | 2,486,419 | 2,451,969 |
| Total current assets | 6,046,599 | 5,525,152 |
| Property and equipment, net | 728,024 | 439,883 |
| Right-of-use lease asset | 1,633,661 | 1,766,912 |
| Intangible assets, net | 12,925,497 | 9,058,889 |
| Goodwill | 7,068,689 | 5,433,689 |
| Other assets | 7,097,279 | 5,532,968 |
| Total assets | 35,499,749 | $ 27,757,493 |
| $ | ||
| Liabilities and Members' Deficit | ||
| Current liabilities | ||
| Accounts payable | 435,883 | $ 119,623 |
| $ | ||
| Accrued and other liabilities | 3,368,024 | 2,267,445 |
| Deferred revenue, current | 1,860,040 | 1,548,649 |
| Current maturities of long-term debt | 599,500 | 306,000 |
| Total current liabilities | 6,263,447 | 4,241,717 |
| Long-term debt, net | 19,918,725 | 14,519,393 |
| Lease liability | 1,693,259 | 1,796,225 |
| Deferred revenue, noncurrent | 12,809,637 | 10,901,598 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the deferred revenue, noncurrent, for 2023 was $12,809,637. This figure represents revenue that 360 Painting has received but not yet earned as of the end of the 2023 fiscal year. This deferred revenue is classified as a noncurrent liability, meaning 360 Painting does not expect to recognize it as earned revenue within the next 12 months.
For a prospective franchisee, understanding deferred revenue is crucial because it reflects the financial obligations 360 Painting has to its customers or franchisees for services or products yet to be delivered. A high deferred revenue balance can indicate strong future revenue streams, but it also signifies a responsibility to fulfill those obligations.
In the context of franchising, deferred revenue often includes initial franchise fees or other upfront payments that are recognized over the term of the franchise agreement. The noncurrent portion suggests that these obligations extend beyond the current year, providing a degree of financial stability for 360 Painting. Monitoring these figures helps potential franchisees assess the financial health and future commitments of the franchisor.