For Big Blue Swim School, what was the amount of revenue recognized during the year 2023?
Big_Blue_Swim_School Franchise · 2025 FDDAnswer from 2025 FDD Document
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NOTE 9. RELATED-PARTY TRANSACTION
Related-party transactions
The Company's largest developer is an affiliated entity through common ownership. Accordingly, in the normal course of business, the Company regularly executes franchise agreements with the affiliated developer pursuant to a development agreement. As a result of these transactions, revenues from these related-party franchises amounted to $609,741, $1,471,387 and $900,039 for each of the years in the three-year period ended December 31, 2024, respectively, and are included in ''Revenues'' in the accompanying statements of operations and member's deficit. Receivables from these related-party franchises amounted to $1,947 and $88,618 as of December 31, 2024 and 2023, respectively. These amounts are included
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 75)
What This Means (2025 FDD)
I am unable to provide the specific total revenue recognized by Big Blue Swim School during 2023, as this information is not present within the provided excerpts from the 2025 Franchise Disclosure Document. The excerpts do contain information on how Big Blue Swim School recognizes revenue, including franchise fees, royalties, brand fund fees, and market introduction program revenue. The FDD also includes the revenue from related-party franchises, which amounted to $1,471,387 in 2023.
To gain a comprehensive understanding of Big Blue Swim School's financial performance, it would be prudent for a potential franchisee to request the full audited financial statements. These statements would offer a detailed breakdown of all revenue streams and associated expenses.
Specifically, a prospective franchisee should ask Big Blue Swim School's management for the total revenue recognized during 2023, as well as a breakdown of revenue by source (franchise fees, royalties, etc.). This information is crucial for assessing the financial health and stability of the franchisor and for developing realistic financial projections for a new Big Blue Swim School franchise location.