What was the amount of Bft's current portion of deferred revenue as of December 31, 2023?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
| Balance at March 6, 2023 | $ — |
|---|---|
| Contract liabilities contributed by Member | 96,875 |
| Revenue recognized that was included in deferred | — |
| revenue at the beginning of the period | |
| Increase, excluding amounts recognized as revenue | |
| during the period | 24,363 |
| Balance at December 31, 2023 | 121,238 |
| Revenue recognized that was included in deferred | |
| revenue at the beginning of the year | (22,382) |
| Decrease in deferred revenue due to divestitures | (1,281) |
| Increase, excluding amounts recognized as revenue | |
| during the year | 8,334 |
| Balance at December 31, 2024 | $ 105,909 |
The following table illustrates estimated revenue expected to be recognized in the future related
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, the current portion of deferred revenue as of December 31, 2023, was $9,918. This figure represents the amount of revenue that Bft has received but not yet earned as of that date, and which Bft expects to recognize as revenue within the next 12 months.
For a prospective franchisee, deferred revenue is an important metric because it reflects Bft's financial stability and its ability to generate future revenue. A high level of deferred revenue may indicate that Bft has a strong pipeline of future business. The current portion of deferred revenue is particularly relevant because it indicates the amount of revenue that Bft expects to recognize in the near term.
It is important to note that deferred revenue is not the same as cash on hand. While Bft has received the cash associated with the deferred revenue, it cannot recognize that cash as revenue until it has fulfilled its obligations to its customers. Therefore, a prospective franchisee should carefully review Bft's financial statements to understand its deferred revenue position and its ability to convert deferred revenue into recognized revenue.