What was the total deferred revenue reported for Ben Jerrys in 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| Liabilities and Equity | ||
| Current liabilities | ||
| Accounts payable | $ 541 | $ 678 |
| Accrued liabilities | 1,244 | 1,657 |
| Due to related party | 7,282 | 3,236 |
| Current tax liabilities | 165 | - |
| Current portion of operating lease liability | 76 | 73 |
| Current portion of financing lease liability | - | 31 |
| Deferred revenue | 47 | 70 |
| Total current liabilities | 9,355 | 5,745 |
| Deferred revenue, noncurrent | 147 | 198 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the consolidated balance sheet for 2023 reports both current and non-current deferred revenue. Current deferred revenue was $47,000, while non-current deferred revenue was $147,000. Therefore, the total deferred revenue for Ben Jerrys in 2023 was $194,000.
Deferred revenue represents payments Ben Jerrys has received for goods or services that have not yet been provided or earned. For a franchisee, this indicates that Ben Jerrys has obligations to fulfill in the future related to these revenues. This could include future services or products that Ben Jerrys is obligated to provide.
The presence of deferred revenue is typical for franchise systems, as initial franchise fees and other upfront payments are often recognized as revenue over time as the franchisor provides ongoing support and services. Monitoring the deferred revenue balance can provide insights into the sustainability of Ben Jerrys's revenue streams and its future obligations to franchisees.
Prospective franchisees should consider the trend of deferred revenue over time, as significant fluctuations could indicate changes in sales, contract terms, or accounting practices. It is also important to understand the specific obligations Ben Jerrys has related to the deferred revenue and how these obligations will be fulfilled.