What was the total amount of deferred franchise fees for 7 Brew as of the date of this financial statement?
7_Brew Franchise · 2025 FDDAnswer from 2025 FDD Document
| Unaudited 2025 | ||
|---|---|---|
| Assets | ||
| Current Asse | ets | |
| Cash | 32,366 | |
| Accounts receivable | 1,908 | |
| Prepaid expenses and other current assets | 1,474 | |
| Total Current Assets | 35,749 | |
| Other Assets | ||
| Other Asset | Property and equipment, net | 1,699 |
| Right-of-use asset - operating lease | 3,198 | |
| Advances to Parent | 31,867 | |
| Total Other Assets | 36,763 · | |
| Total Assets | 72,512 | |
| Liabilities ar | nd Members' Equity | |
| Accounts payable and accrued expenses | 6,607 | |
| Current portion of deferred franchise fees | 966 | |
| Current portion of operating lease liability | 744 | |
| Total Current Liabilities | 8,317 | |
| Other Liabili | ties | |
| Deferred franchise fees | 35,888 | |
| Operating lease liability | 2,474 | |
| Total Other Liabilities | 38,362 | |
| Total Liabili | ties | 46,678 |
| Members' E | quity | 25,834 |
| Total Linkilii | ties and Members' Equity | 72,512 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 82)
What This Means (2025 FDD)
According to 7 Brew's 2025 Franchise Disclosure Document, the balance sheet dated March 23, 2025, shows deferred franchise fees of $35,888 (in thousands). This represents the portion of initial franchise fees that 7 Brew has received but not yet recognized as revenue because it has not yet completed all the services or satisfied all the conditions related to the sale of the franchise.
Additionally, the balance sheet lists a 'current portion of deferred franchise fees' of $966 (in thousands). This represents the amount of deferred franchise fees that 7 Brew expects to recognize as revenue within the next year. The total liabilities for 7 Brew are listed as $46,678 (in thousands).
It is important for a prospective 7 Brew franchisee to understand how franchise fees are deferred, as this impacts the franchisor's revenue recognition and financial reporting. Reviewing the balance sheet provides insight into the financial obligations and liabilities of 7 Brew at a specific point in time.