According to the 2025 FDD, Antioch Pizza Shop had no deferred commissions in 2022. The balance sheet data shows deferred commissions of $8,965 in 2024 and $16,973 in 2023, but the listed value for 2022 is zero.

Deferred commissions represent commission expenses that Antioch Pizza Shop has paid but not yet recognized on its income statement. This typically occurs when the corresponding revenue has not yet been earned. In Antioch Pizza Shop's case, these commissions likely relate to franchise fees received from franchisees who have not yet opened their locations. The commissions are deferred until the franchisee commences operations, at which point both the revenue and the associated commission expenses are recognized.

The fact that Antioch Pizza Shop had no deferred commissions in 2022 could indicate that all franchisees who paid initial fees that year had already commenced operations by the end of the year. Alternatively, it could mean that no new franchise agreements were signed in 2022 that resulted in deferred commissions. Franchisees should note that deferred expenses can impact the company's financial statements and should be considered when evaluating the financial health of Antioch Pizza Shop.

It's important to note that while the table provides specific figures for deferred commissions, the accompanying notes to the financial statements offer additional context. These notes explain the company's accounting policies, including how revenue and commissions are recognized, which can help prospective franchisees better understand the financial data presented.