What was the change in deferred franchise fees for Beggars Pizza in 2022?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the initial franchise fees deferred totaled $37,500 at December 31, 2022, and $25,000 at December 31, 2021. This indicates an increase in deferred franchise fees of $12,500 during 2022.

Deferred franchise fees represent the initial franchise fees that Beggars Pizza has collected but not yet recognized as revenue. These fees are typically recognized as revenue when the franchisee opens their location or if the franchise agreement is terminated. The increase in deferred franchise fees suggests that Beggars Pizza collected more franchise fees in advance during 2022 than it recognized as revenue during that period.

For a prospective Beggars Pizza franchisee, this information provides insight into the company's revenue recognition practices and its financial performance. An increase in deferred revenue could indicate growth in new franchise sales. However, it is important to note that deferred revenue is not the same as realized revenue, and the company's future financial performance will depend on its ability to convert deferred revenue into recognized revenue.