What is the total amount of liabilities for Better Blend as of December 31, 2022?

According to Better Blend's 2024 Franchise Disclosure Document, the company had $145,000 in contract liabilities as of December 31, 2022. These contract liabilities are categorized as deferred revenue, which represents unearned revenue from the sale of new franchises and the approval of new franchisee locations.

Better Blend recognizes franchise fee and development fee revenues when performance obligations are satisfied. The FDD states that management has determined that these obligations related to franchise fees are satisfied over time, with revenue recognized over the term of the franchise agreement. This means that the $145,000 represents fees collected for which Better Blend has not yet completed its service obligations to franchisees as of the end of 2022.

For a prospective franchisee, this deferred revenue figure indicates the company's financial obligations to its franchisees at that time. It reflects the amount of services or support Better Blend is obligated to provide in the future in exchange for fees already collected. Reviewing the trend of deferred revenue over time could provide insights into the company's growth and its ability to fulfill its obligations to franchisees.