What was the amount of deferred revenue recognized during the year 2023 by Bor Restoration?

According to Bor Restoration's 2024 Franchise Disclosure Document, the amount of services recognized over time for the year ended December 31, 2023, was $4,095,298. This revenue recognition relates to services provided by Bor Restoration franchises, such as fire, water, and mold remediation, along with content cleaning restoration services. Deferred revenue typically represents payments received for services or products that have not yet been fully delivered or earned.

For a prospective Bor Restoration franchisee, understanding deferred revenue is crucial because it reflects how the company accounts for revenue from franchise fees and other sources over time. The fact that $4,095,298 was recognized over time in 2023 indicates that Bor Restoration is actively providing services and fulfilling its obligations to its franchisees, which generates revenue that is recognized as it is earned.

It is also important to note that the FDD states that no services were recognized at a point in time during 2023. This means all revenue recognized was tied to ongoing service delivery rather than one-time transactions. This accounting practice provides a clearer picture of the company's financial performance by matching revenue with the actual delivery of services over the relevant period.