What amount of services were recognized at a point in time by Bor Restoration in 2020?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
2020:
The following table provides information about significant changes in deferred revenue on franchise fees for the year ended December 31,:
| | 2022 | 2021 | 2020 | |--------------------------------------------
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, during the year ended December 31, 2020, the amount of services recognized at a point in time was $0. In contrast, services recognized over time amounted to $182,000 for the same period. This indicates that Bor Restoration did not recognize any revenue from services at a single point in time during that year.
For a prospective franchisee, this information is relevant because it provides insight into how Bor Restoration recognizes revenue. The fact that no services were recognized at a point in time in 2020 suggests that the company's revenue recognition model primarily relies on recognizing revenue over the duration of service delivery rather than upfront.
This could be due to the nature of the fire, water, and mold remediation services Bor Restoration provides, where revenue is earned as the remediation work progresses. Franchisees should inquire about the specific criteria and methods Bor Restoration uses to determine when and how revenue is recognized, as this can impact their financial reporting and understanding of their business's performance.