When is the initial franchise fee for a Beyond Juicery Eatery franchise considered fully earned?

According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the initial franchise fees are allocated to each individual franchise and recognized over the term of the respective franchise agreement from the date the restaurant is opened. This means that Beyond Juicery Eatery does not consider the initial franchise fee fully earned upon payment but rather recognizes it as revenue gradually over the term of the franchise agreement, which is typically 10 years.

For a prospective franchisee, this accounting practice has implications for Beyond Juicery Eatery's financial statements. The initial franchise fee is not immediately recognized as revenue but is instead spread out over the 10-year franchise term. This approach aligns the revenue recognition with the ongoing services and support that Beyond Juicery Eatery provides to the franchisee throughout the franchise term, such as training, site selection assistance, and advertising.

This revenue recognition method is a common practice in the franchise industry, as it reflects the ongoing relationship between the franchisor and franchisee. It's important for franchisees to understand that while the initial fee is non-refundable, Beyond Juicery Eatery recognizes this revenue over time as they fulfill their obligations under the franchise agreement. This can provide a more accurate picture of the company's financial performance and stability.