What was the amount of the deferred revenue for Aunt Millies Bakeries as of September 30, 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
are made based on historical experience and other factors. Price promotion discount expense is recorded as a reduction to gross sales when the discounted product is sold to the customer.
Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in our delivering and selling expenses line item on the consolidated statements of operations.
Fuel, Flour, and Wheat Commitments: The Company routinely enters into forward purchase commitment contracts for a portion of its projected flour and wheat requirements. As of September 30, 2023 and 2022, the Company had forward flour and wheat commitment contracts totaling approximately $27,308,569 and $38,029,000, respectively. The Company entered into forward purchase commitment
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the information about deferred revenue for Aunt Millies Bakeries is not available. However, the document does state that as of September 30, 2023, the company had forward flour and wheat commitment contracts totaling approximately $27,308,569 and forward fuel commitment contracts totaling approximately $4,275,010.
Because the FDD does not specify the deferred revenue, it is important for a prospective franchisee to conduct thorough due diligence. This includes requesting specific financial statements from Aunt Millies Bakeries that detail deferred revenue and understanding the franchisor's revenue recognition policies.
Understanding deferred revenue is crucial as it represents payments received for goods or services that have not yet been delivered or rendered. This can impact the franchisee's assessment of the company's financial health and future obligations. A potential franchisee should also inquire about the terms and conditions associated with these commitments to fully understand their financial implications.