What was the deferred franchise revenue (current) for Best Brains as of December 31, 2022?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| Particulars | Schedule No. | As at December 31, 2023 | As at December 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Current Assets Cash & cash equivalents | 1 | 262,049.67 | 154,275.10 |
| Inventory | _ | 417,347.00 | 289,840.00 |
| Trade Receivables | 2 | 2,038,407.38 | 1,549,975.79 |
| Other Current Assets Total Currrent Assets | 3 | 255,726.78 2,973,530.83 | 225,576.84 2,219,667.73 |
| Property and Equipment ,net of accumulated depreciation | 4 | 290,790.28 | 268,207.05 |
| Other Assets | 5 | 1,076,049.46 | 958,557.46 |
| Total Assets | 4,340,370.57 | 3,446,432.24 | |
| Current liabilities Accounts Payable Other Current Liabilities Deferred Franchise revenue-current Total Current Liabilities | 6 | 3,444,214.53 276,415.25 45,025.00 3,765,654.78 | 2,654,584.46 80,489.91 65,939.00 2,801,013.37 |
| Long term liabilities | 7 | ||
| Loans & Advances | • | 144,439.99 | 140,568.45 |
| Mortgages ,notes , bonds payable in 1 year or m | iore | 150,000.00 | 150,000.00 |
| Deferred Franchise revenue-long term Total Long Term Liabilities | 91,143.01 385,583.00 | 96,212.40 386,780.85 | |
| Total Liabilities | 4,151,237.78 | 3,187,794.22 | |
| Shareholder's Equity | |||
| Common Stock | 1,000.00 | 1,000.00 | |
| Additional Paid in capital | 8 | 121,375.00 66,757.79 | 121,375.00 136,263.02 |
| Retained Earnings- Unappropriated | |||
| Total Equity | 189,132.79 | 258,638.02 | |
| Total Liabilities and Shareholder's Equity | 4,340,370.57 | 3,446,432.24 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 42)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, the deferred franchise revenue (current) as of December 31, 2022, was $65,939. This figure represents franchise fees that Best Brains has received in advance but has not yet recognized as earned revenue.
Deferred revenue typically arises when Best Brains collects initial franchise fees from new franchisees. Because Best Brains has not yet fully performed its obligations to the franchisee (such as providing training, site selection assistance, and initial marketing support), the revenue recognition is deferred. Instead, Best Brains recognizes this revenue gradually over the term of the franchise agreement, which is generally five years.
For a prospective Best Brains franchisee, this deferred revenue figure provides insight into the financial health and revenue recognition practices of the franchisor. It indicates the amount of cash Best Brains has on hand from franchise fees that will be recognized as revenue in the future. Monitoring this deferred revenue balance, along with overall revenue trends, can help a franchisee assess the stability and growth potential of the Best Brains franchise system.