What was the amount of deferred revenue for Antioch Pizza Shop in 2023?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 5,943 | $ | 8,142 | $ | 1,759 |
| Deferred revenue | 35,000 | 35,000 | 25,000 |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the company had $35,000 in deferred revenue as of December 31, 2023. This deferred revenue is classified as a current liability on the balance sheet, meaning it represents obligations that Antioch Pizza Shop expects to settle within one year.
Deferred revenue arises from franchise fees that Antioch Pizza Shop has received from franchisees who have not yet begun operations. The company recognizes this revenue only when the franchisee commences operations, adhering to the revenue recognition policy. Until then, the revenue is deferred, reflecting Antioch Pizza Shop's obligation to provide the services or rights for which the fees were collected.
For a prospective Antioch Pizza Shop franchisee, this deferred revenue figure provides insight into the financial obligations and revenue recognition practices of the franchisor. It indicates the amount of revenue that Antioch Pizza Shop has already collected but not yet recognized as earned income. Reviewing these figures over several years, as presented in the FDD, can reveal trends in Antioch Pizza Shop's ability to attract new franchisees and the timing of new store openings.