What was the amount of Best Brains' deferred franchise revenue (current) in the earlier year presented?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Account and credit card payable | 4 | ,116,083 | 3 | ,545,720 | |
|---|---|---|---|---|---|
| Mortgages, notes, bonds payable within 1 year | 157,834 | 50,129 | |||
| Deferred franchise revenue - Current | 111,920 | 45,025 | |||
| Other current liabilities | 157,392 | 170,701 |
Source: Item 23 — RECEIPTS (FDD pages 42–190)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the company's deferred franchise revenue (current) was $45,025 in the earlier of the two years presented. This liability represents initial franchise fees that Best Brains has collected but not yet recognized as earned revenue on its income statement.
Deferred revenue typically arises when Best Brains receives cash upfront for services or rights that will be provided over a future period. As Best Brains fulfills its obligations under the franchise agreements, such as providing training and support, portions of the deferred revenue are recognized as earned revenue.
The current portion of deferred revenue includes amounts expected to be recognized within the next 12 months. Monitoring deferred revenue can provide insights into Best Brains' future revenue streams and the rate at which they are fulfilling their obligations to franchisees.