What is included in Amorino's deferred revenue at December 31, 2024?
Amorino Franchise · 2025 FDDAnswer from 2025 FDD Document
m of the agreement, franchisees are permitted to purchase ingredients and supplies from the affiliate.
Because the Company has a small number of franchisees, the revenue from each franchisee represents a significant concentration of the Company's total revenue for each of the years ended December 31, 2024, 2023, and 2022.
Deferred Revenue: Deferred revenue represents revenue to be recognized in future years over the remaining lives of the franchise agreements. These are contract lia
Source: Item 22 — CONTRACTS (FDD pages 80–81)
What This Means (2025 FDD)
According to Amorino's 2025 Franchise Disclosure Document, deferred revenue at December 31, 2024, includes franchise fees that will be recognized as revenue over the remaining lives of franchise agreements. These agreements have terms ranging from July 2026 through October 2035. Deferred revenue is classified as contract liabilities for performance obligations that have not yet been fulfilled by Amorino.
In simpler terms, Amorino collects franchise fees upfront from its franchisees, but recognizes this revenue over the duration of the franchise agreement rather than immediately. The deferred revenue balance represents the portion of these initial fees that Amorino has not yet recognized as earned revenue as of December 31, 2024. This is a common accounting practice in franchising, as the franchisor's obligations to support the franchisee extend over the life of the agreement.
For a prospective Amorino franchisee, this means that the initial franchise fee you pay contributes to Amorino's deferred revenue. Amorino recognizes this revenue gradually as they fulfill their obligations to support your franchise over the term of your agreement. The FDD also notes that there were $83,250 deferred revenues recorded at January 1, 2022. The deferred revenue, net of current portion, was $233,283 as of December 31, 2024.