What was the amount of Apricot Lane's deferred revenue at the end of 2024?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
| CITY | STATE | FRANCHISE OWNER(S) | PHONE |
|---|---|---|---|
| Chandler | AZ | Maria-Paz & Alex Stavros | (617) 869-1807 |
| Tarpon Springs | FL | Rhonda & Chris Worley | (813) 300-1046 |
| Tampa Bay | FL | Tanya Shuster | (216) 577-8668 |
| Garden City | KS | Tracey Wanker | (316) 570-0850 |
| Prior Lake | MN | Anjanette & Joel Pykkonen | (612) 418-8626 |
| Bozeman | MT | Danni VanDyke | (406) 208-3633 |
| S. Myrtle Beach | SC | Wendy Dowd | (910) 840-3050 |
| Weatherford | TX | Dana Robinson | (402) 657-8008 |
NOTE 5 - FRANCHISE FEES RECEIVABLE AND DEFERRED FRANCHISE FEES
Franchise fees totaling $222,000 and $207,000 were receivable at December 31, 2024 and 2023 respectively. Franchise fees received as income from new store openings in 2024 and 2023 were $732,500 and $994,000 respectively. In accordance with the Company's accounting policy described in Note 1, recognition of such fees as revenue is deferred until the store opens. As a result, the Company had
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to Apricot Lane's 2025 Franchise Disclosure Document, the company had deferred revenue of $316,500 as of December 31, 2024. This deferred revenue stems from franchise fees received from new store openings during 2024, which totaled $732,500.
Apricot Lane's accounting policy, as detailed in Note 1 of the FDD, dictates that franchise fees are recognized as revenue only when all services specified in the franchise agreement have been performed. These services typically include site selection, lease negotiation, franchisee and employee training, marketing, and store opening assistance. Therefore, the revenue recognition is deferred until the franchisee's store actually opens.
For a prospective Apricot Lane franchisee, this deferred revenue figure indicates the amount of franchise fees the company has already collected but has not yet recognized as earned revenue because the related franchise locations were not yet open as of the end of 2024. This provides insight into the company's pipeline of future revenue and its financial obligations to new franchisees who are in the process of opening their stores.