What was the amount of deferred revenue at the beginning of 2022 for Bor Restoration?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
December 31, 2019. The years subsequent to this year contain matters that could be subject to differing interpretations of applicable tax laws and regulations. Although the outcome of tax audits is uncertain, the Company believes no issues would arise.
Notes To Financial Statements For The Years Ended December 31, 2023, 2022 and 2021
Page -11-
(4) Deferred Revenue
Deferred revenue consisted of the following as of December 31, 2023, 2022 and 2021:
The following
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the deferred revenue at the beginning of 2022 was $94,350. This figure represents revenue that Bor Restoration has received but not yet earned as of the beginning of that year.
Deferred revenue typically arises from initial franchise fees or other upfront payments that Bor Restoration recognizes over time as it fulfills its obligations to franchisees. The deferred revenue is recognized as earned revenue as Bor Restoration provides ongoing services and support to its franchisees.
For a prospective Bor Restoration franchisee, understanding deferred revenue can provide insight into the financial health and revenue recognition practices of the franchisor. It is important to note that deferred revenue is a common accounting practice in franchising and other industries where services are provided over an extended period.