What was the change in deferred revenue for Better Blend?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
proximately $50,000 for the years ended December 31, 2023.
NOTE 2 - DEFERRED REVENUE
Deferred revenue represents unearned revenue generated from the sale of new franchises and the approval of new franchisee locations. Franchise fee and development fee revenues are recognized when performance obligations are satisfied. Management determined that performance obligations related to franchise fees are satisfied over time and revenue is recognized over the term of the franchise agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, deferred revenue, which represents unearned revenue from new franchise sales and approvals, was $145,000 as of December 31, 2022. The document also indicates that Better Blend had approximately $145,000 of contract liabilities as of December 31, 2022.
To determine the change in deferred revenue, we would need the deferred revenue figure for December 31, 2023. However, this specific value is not provided in the excerpts.
Without the deferred revenue figure for December 31, 2023, it is impossible to calculate the change in Better Blend's deferred revenue from 2022 to 2023. A prospective franchisee should ask Better Blend for the deferred revenue amount as of December 31, 2023, to understand how this key liability metric has changed year-over-year.