What was the deferred revenue for Bananas Smoothies Frozen Yogurt at the beginning of 2023?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
71,085 | | Total point in time | 639,691 | 704,017 | 748,225 | | Over time: | 13,583 | 13,584 | 15,527 | | Franchise fees | | | | | Total revenues | $ 653,274 | $ 717,601 | $ 763,752 |
NOTE 3. REVENUES AND RELATED CONTRACT BALANCES (CONTINUED)
Contract balances
Contract liabilities are comprised of un
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 FDD, Bananas Smoothies Frozen Yogurt's deferred revenue at the beginning of 2023 was $50,983. This figure represents revenue that the company has received but not yet earned as of that date. This commonly arises from franchise fees or other payments received upfront for services or goods to be delivered in the future.
For a prospective franchisee, deferred revenue indicates the financial obligations Bananas Smoothies Frozen Yogurt has to its franchisees or other parties. A higher deferred revenue balance could suggest a strong pipeline of new franchise openings or significant prepaid obligations.
It is important to note that this deferred revenue is a snapshot at the beginning of 2023. The table also shows that the revenue recognized during 2023 was ($13,584), and the deferred revenue at the end of 2023 was $37,399. Reviewing these changes over time can provide insights into the company's revenue recognition practices and overall financial health.