What was the deferred franchise revenue (long term) for Best Brains as of December 31, 2023?
Best_Brains Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2024 | December 31, 2023 | |
|---|---|---|
| Non-Current Liabilities | ||
| Mortgages, notes, bonds payable in 1 year or more | 300,090 | 94,311 |
| Economic injury disaster loan (EIDL) | 150,000 | 150,000 |
| Deferred franchise revenue - Non-current | 402,161 | 91,143 |
| Total Non-current Liabilities | 852,251 | 335,454 |
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 (non-current) as of December 31, 2023, was $91,143. This represents franchise fees that Best Brains has received but not yet recognized as earned revenue.
Deferred revenue typically arises when Best Brains receives initial franchise fees upfront but recognizes the revenue over the term of the franchise agreement, which, as noted elsewhere in the document, is generally five years. The non-current portion indicates the amount of revenue that Best Brains expects to recognize beyond the next 12 months from December 31, 2023.
For a prospective Best Brains franchisee, this deferred revenue balance provides insight into the financial obligations and revenue recognition practices of the franchisor. It reflects the future revenue that Best Brains anticipates earning from its existing franchise agreements. Understanding this deferred revenue can help a franchisee assess the financial stability and revenue forecasting of Best Brains.