What was the franchise contract obligation for Bhc as of December 31, 2024?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
| Franchise contract obligation, December 31, 2023 | $ 0 | |
|---|---|---|
| Newly contracted in 2024 | 417,100 | |
| Franchise revenue recognized | (35,433) | |
| Franchise contract obligation, December 31, 2024 | $ 381,667 |
[Item 23: Receipts]
The Company s franchise contract liability includes development fees, initial franchise and license fees. As of December 31, 2024, the Company also has remaining education service obligation in the amount of $2,343 which was the result of $9,500 contract amount in 2024 less ($7,157) service already provided.
The following table illustrates the estimated revenue to be recognized in the future related to performance obligations that are unsatisfied as of December 31, 2024.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the franchise contract obligation as of December 31, 2024, was $381,667. This figure represents the estimated revenue to be recognized in the future related to performance obligations that were unsatisfied as of that date. The franchise contract liability includes development fees, initial franchise, and license fees.
In 2024, Bhc entered into new contracts totaling $417,100. During the same period, Bhc recognized $35,433 in franchise revenue. The franchise contract obligation represents the amount of revenue that Bhc has not yet recognized but is obligated to fulfill under the franchise agreements.
Additionally, as of December 31, 2024, Bhc had a remaining education service obligation of $2,343. This obligation stemmed from a $9,500 contract amount in 2024, less $7,157 of service already provided. This indicates that Bhc provides education services as part of its franchise agreements, and a portion of these services remained unfulfilled at the end of the year.