How does Bft classify contract liabilities on its consolidated balance sheet?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024 Assets Current Assets: Cash and cash equivalents $ 8,593 Accounts receivable, net 5,874 Prepaid expenses and other current assets 136 Deferred costs, current portion 3,906 Total current assets 18,509 Property and equipment, net 7,898 Intangible assets, net 86,485 Deferred costs, net of current portion 36,935 Other assets 563 Total assets $ 150,390 Liabilities and Member's equity Current Liabilities: Accrued expenses $ 877 Deferred revenue, current portion 14,307 Total current liabilities 15,184 Deferred revenue, net of current portion 96,065 Total liabilities 111,249 Commitments and contingencies (Note 9) Member's equity: Member contribution 48,542 Advances to Member, net (Note 7) (155,034 ) Retained earnings (accumulated deficit) 145,633 Total member's equity 39,141 Total liabilities and member's equity $ 150,390
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, contract liabilities are classified as "Deferred revenue" on the consolidated balance sheet. As of December 31, 2024, the current portion of deferred revenue is $14,307, while the net of current portion is $96,065. This results in total deferred revenue of $110,372. These liabilities represent revenues that Bft has collected but not yet earned.
The FDD also provides a breakdown of when these contract liabilities are expected to be recognized as revenue. In 2025, $9,845 is expected to be recognized, followed by $10,091 in 2026, $10,890 in 2027, $11,572 in 2028, and $11,028 in 2029. The remaining $52,483 is expected to be recognized thereafter. This detailed breakdown gives a prospective franchisee insight into the timing of Bft's revenue recognition and how it manages its deferred revenue.
For a potential Bft franchisee, understanding these figures is crucial. Deferred revenue represents a future obligation for Bft to provide services or fulfill other contractual obligations for which it has already received payment. Monitoring the changes in deferred revenue can provide insights into Bft's sales performance and future revenue streams. Franchisees should consider these liabilities when assessing the financial health and stability of Bft.