What was the deferred revenue reported for Antioch Pizza Shop in 2024?
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, 2024. Deferred revenue represents franchise fees and commissions received from franchisees who have not yet begun operations. Antioch Pizza Shop recognizes these revenues when the franchisee commences operations. The deferred revenue is categorized as current, indicating that the company expects these franchisees to begin operations within the following year. This deferred revenue is a liability on Antioch Pizza Shop's balance sheet, as the company has an obligation to provide the services or rights for which it has already been paid.
For a prospective Antioch Pizza Shop franchisee, this deferred revenue figure provides insight into the company's pipeline of new store openings. A higher deferred revenue balance could indicate strong franchise sales and future revenue growth for the franchisor as these locations become operational and start paying royalties. However, it's important to note that delays in store openings could impact the timing of revenue recognition for Antioch Pizza Shop.
It is also worth noting that the deferred revenue was the same in 2023 as in 2024, which may indicate a slowdown in new franchise openings. The 2022 deferred revenue was $25,000, which is lower than the deferred revenue for 2023 and 2024. A prospective franchisee may want to inquire about the number of new franchises that are expected to open in the coming year and what factors could affect the timing of those openings.