Did Amorino record any accounts receivable at January 1, 2022?

According to Amorino's 2025 Franchise Disclosure Document, the company did not record any accounts receivable at January 1, 2022. However, the FDD indicates that there were $83,250 in deferred revenues recorded at that date.

Accounts receivable represent money owed to Amorino by its customers (franchisees) for goods or services already provided, while deferred revenue represents payments Amorino has received for goods or services that have not yet been delivered or performed. In Amorino's case, this deferred revenue relates to franchise fees that will be recognized as revenue over the life of the franchise agreements, which extend from July 2026 through October 2035.

The FDD also notes that for the years 2024, 2023 and 2022, Amorino had no bad debt expense because the collection for the accounts receivable was reasonably certain. This suggests that while accounts receivable balances may fluctuate, Amorino has been successful in collecting what is owed to them. Prospective franchisees should inquire about Amorino's specific policies and procedures for managing accounts receivable and deferred revenue to fully understand the company's financial practices.