What was the total value of noncurrent liabilities for Afuri Ramen Dumpling?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
| ABBETS | ||
|---|---|---|
| Current assets | ||
| Cash and cash equivalents | 8 | 938,851 |
| Accounts receivable, net of allowance | 46,700 | |
| Due from affiliates | 68,488 | |
| Prepaid expenses | 603 | |
| Total current assets | 1,054,642 | |
| Property and equipment | ||
| Machinery and equipment | 8,779 | |
| Less: accumulated depreciation | (3,562) | |
| Net property and equipment | 5,217 | |
| Other assets | ||
| Intangible assets | 97,492 | |
| Deferred income tax | 24,000 | |
| Total other assets | 121,492 | |
| Total assets | $ | 1,181,351 |
| LIABILITIES AND STOCKHOLD | NEGIS EQUIEV DEK'S EQUIL I | |
| Current liabilities | $ | 1,197 |
| Accounts payable | 2 | |
| Due to parent | 193,804 | |
| Due to affiliates | 19,429 | |
| Credit cards payable | 6,469 | |
| Gift card liabilities and other | 47,563 | |
| Income tax payable | 800 | |
| Deferred revenue, current portion | _ | 102,493 |
| Total current liabilities | 371,755 | |
| Noncurrent liabilities | ||
| Deferred revenue less current portion | _ | 797,961 |
| To |
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, the company's total noncurrent liabilities amounted to $797,961 as of December 31, 2021. Noncurrent liabilities are long-term financial obligations that are not expected to be settled within one year. In Afuri Ramen Dumpling's case, the entirety of its noncurrent liabilities is attributed to deferred revenue less the current portion.
Deferred revenue represents payments Afuri Ramen Dumpling has received for services or goods that have not yet been fully provided or delivered. The 'less current portion' indicates the amount of deferred revenue that extends beyond the upcoming year. This suggests that Afuri Ramen Dumpling has received payments for franchise services, such as training or initial franchise fees, that will be recognized as revenue over a longer period.
For a prospective franchisee, this information provides insight into Afuri Ramen Dumpling's financial obligations and how they manage their revenue recognition. It's important to understand the nature of these deferred revenues and how they might impact the franchisor's financial stability and future performance. Franchisees should inquire about the specific services or goods related to the deferred revenue and the timeline for their fulfillment.