According to Better Blend's 2024 Franchise Disclosure Document, the company's deferred revenue as of December 31, 2022, was $145,000. This deferred revenue represents unearned revenue from the sale of new franchises and the approval of new franchisee locations.

For a prospective Better Blend franchisee, this indicates that Better Blend had a notable amount of unearned revenue on its books at the end of 2022. This deferred revenue is associated with franchise and development fees, which are recognized as revenue over time as Better Blend fulfills its obligations under the franchise agreement.

The FDD specifies that Better Blend recognizes franchise fee and development fee revenues when performance obligations are satisfied, with franchise fees being recognized over the term of the franchise agreement. This accounting practice is common in franchising, as the franchisor's obligations extend throughout the duration of the franchise agreement, not just at the initial sale.