What was the amount of the deferred revenue, long-term, for Aunt Millies Bakeries as of September 30, 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
progress | 6,691,112 | 3,102,063 | | Land | 2,446,173 | 2,471,173 | | | 39,539,220 | 38,210,298 | | Notes receivable – distributor routes, less current maturities, net | 4,862,381 | 3,256,368 | | Right of use assets | 20,264,988 | 20,972,254 | | Other assets | 769,267 | 854,588 | | Noncurrent assets held for sale | 25,000 | • 447.070.000 | | Total assets | $ 126,654,714 | $ 117,073,938 |
PERFECTION BAKERIES, INC. CONSOLIDATED BALANCE SHEETS September 30, 2024 and 2023
| LIABILITIES | 2024 | 2023 | ||
|---|---|---|---|---|
| Current liabilities | ||||
| Current maturities of long-term obligations | $ | 1,704,850 | $ | 1,677,001 |
| Subordinated revolving credit facility | 1,973,937 | 2,740,852 | ||
| Current portion of pension plan withdrawal liability | 578,437 | 541,636 | ||
| Accounts payable | 21,890,353 | 24,501,524 | ||
| Accrued expenses | 26,086,770 | 22,040,792 | ||
| Lease liability, current | 4,691,689 | 4,481,275 | ||
| Deferred revenue | 835,063 | _ | 864,603 | |
| Total current liabilities | 57,761,099 |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries' 2025 Franchise Disclosure Document, the deferred revenue, long-term, was $534,139 as of September 30, 2023. This figure represents revenue that Aunt Millies Bakeries has received but not yet earned, and which is related to long-term obligations. For comparison, the deferred revenue, long-term, as of September 30, 2022 was $581,716.
Deferred revenue typically arises from situations where Aunt Millies Bakeries receives payment in advance for goods or services that will be delivered or performed over an extended period. This liability reflects Aunt Millies Bakeries' obligation to provide those future goods or services. The decrease in deferred revenue from 2022 to 2023 could indicate a change in sales patterns, contract terms, or the timing of revenue recognition.
A prospective franchisee should understand the nature of Aunt Millies Bakeries' deferred revenue, as it can impact the company's financial stability and future obligations. Understanding the terms and conditions that give rise to deferred revenue can provide insight into the sustainability of Aunt Millies Bakeries' revenue streams.
It would be prudent for a potential franchisee to inquire about the specific agreements or transactions that generate deferred revenue, the length of the deferral periods, and the methods Aunt Millies Bakeries uses to recognize this revenue over time. This information can help in assessing the overall financial health and future prospects of the franchise.