What was the reported amount for long-term deferred revenue for Aunt Millies Bakeries in 2023?
Aunt_Millies_Bakeries Franchise · 2025 FDDAnswer from 2025 FDD Document
iation and amortization | 135,837,503 | 133,591,832 | | | 32,637,062 | 33,948,070 | | Construction in progress Land | 3,102,063 | 3,538,511 | | | 2,471,173 | 2,426,175 | | | 38,210,298 | 39,912,756 | | Notes receivable – distributor routes, less current maturities, net | 3,256,368 | 3,302,243 | | Right of use assets | 20,573,026 | - | | Other assets | 854,588 | 940,611 | | Total assets | $ 117,073,938 | $ 85,363,706 |
PERFECTION BAKERIES, INC. CONSOLIDATED BALANCE SHEETS September 30, 2023 and 2022
| 2023 | 2022 | |||
|---|---|---|---|---|
| LIABILITIES | ||||
| Current liabilities | • | 4 077 004 | • | 4 007 040 |
| Current maturities of long-term obligations | $ | 1,677,001 | $ | 1,297,919 |
| Subordinated revolving credit facility | 2,740,852 | 2,452,450 | ||
| Current portion of pension plan withdrawal liability | 541,636 | 507,179 | ||
| Accounts payable | 24,501,524 | 22,576,270 | ||
| Accrued expenses | 22,040,792 | 18,606,420 | ||
| Lease liability, current | 4,481,275 | |||
| Deferred revenue | 864,603 | - | 856,317 | |
| Total current liabilities | 56,847,683 | 46,296,555 7 70 4 555 | ||
| Revolving credit facility | - | 5,704,555 | ||
| Long-term obligations, less current maturities | 6,414,044 | 5,619,746 | ||
| Deferred revenue, long-term | 534,139 | 581,716 | ||
| Accrued postretirement life and health benefits and pension plan | 3,698,115 | 3,099,194 | ||
| Pension plan withdrawal liability | 11,746,895 | 12,288,529 | ||
| Lease liability, long-term | 15,696,871 | - | ||
| Other liabilities | _ | 6,289,280 | 5,454,980 | |
| Total liabilities | 101,227,027 | 79,04 |
Source: Item 23 — RECEIPT (FDD pages 44–196)
What This Means (2025 FDD)
According to Aunt Millies Bakeries's 2025 Franchise Disclosure Document, the company reported long-term deferred revenue of $534,139 in 2023. This figure represents revenue that Aunt Millies Bakeries has received but has not yet earned, and it will be recognized as revenue in future periods. For a prospective franchisee, this indicates the financial obligations and future revenue recognition related to long-term contracts or agreements that Aunt Millies Bakeries has in place.
Deferred revenue is a common accounting practice, especially in businesses with subscription models or long-term service agreements. The long-term portion suggests that these revenues will be recognized over a period longer than one year. The franchisee should understand the nature of these deferred revenues, as they can impact the overall financial health and stability of Aunt Millies Bakeries. Understanding the terms and conditions associated with these deferred revenues is crucial for assessing the company's financial position.
It is important for potential franchisees to review the complete financial statements and accompanying notes in the FDD to gain a comprehensive understanding of Aunt Millies Bakeries's liabilities and revenue recognition policies. Consulting with a financial advisor or accountant can provide further insights into the implications of deferred revenue and other financial metrics presented in the FDD. This due diligence will help the franchisee make an informed decision about investing in an Aunt Millies Bakeries franchise.