What was the amount of deferred revenue at the beginning of 2023 for All Dogs Unleashed?
All_Dogs_Unleashed Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Deferred revenue – beginning of year |
Source: Item 23 — RECEIPTS (FDD pages 49–158)
What This Means (2025 FDD)
According to All Dogs Unleashed's 2025 Franchise Disclosure Document, the deferred revenue at the beginning of 2023 was $66,413. This figure represents revenue that All Dogs Unleashed has received but not yet earned as of that date.
Deferred revenue typically arises from franchise fees or other payments received upfront for services or products that will be delivered over time. As All Dogs Unleashed provides these services or products, the deferred revenue is recognized as earned revenue on the income statement.
For a prospective All Dogs Unleashed franchisee, understanding deferred revenue can provide insights into the company's financial stability and revenue recognition practices. It's a common accounting practice in the franchise industry, and the amount can vary depending on the timing of new franchise sales and the terms of the franchise agreements.