What was the Better Blend franchise fee revenue for the year ended December 31, 2022?

According to Better Blend's 2024 Franchise Disclosure Document, the franchise fee revenue for the year ended December 31, 2022, was approximately $2,600. The initial franchise fees collected are determined on a franchisee-by-franchisee basis. As of December 31, 2022, Better Blend had three franchisees under contract, but none were operational at that time.

This indicates that while Better Blend had agreements in place with franchisees, the actual revenue generated from these agreements was minimal during 2022. The fact that no locations were operational by the end of the year suggests that the $2,600 likely represents initial payments or deposits rather than full franchise fees.

Prospective franchisees should note that the timing of revenue recognition can impact the franchisor's reported income. In Better Blend's case, franchise fee revenue is recognized over the term of the franchise agreement, as indicated by the deferred revenue note. This means that the initial franchise fee is not fully recognized as revenue until the performance obligations are satisfied over time. This is a common accounting practice in the franchise industry.