What amount of services were recognized at a point in time by Bor Restoration in 2021?
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 ending December 31, 2021, Bor Restoration did not recognize any services at a point in time. This means that all of the $393,597 in services revenue recognized in 2021 was recognized over a period of time.
For a prospective franchisee, this indicates how Bor Restoration recognizes revenue. In this case, revenue is recognized over time rather than at a single point. This could be because the services provided by Bor Restoration, such as fire, water, and mold remediation, typically extend over a period.
Understanding revenue recognition is crucial for franchisees as it impacts financial reporting and performance evaluation. Franchisees should inquire about the specific criteria and methods Bor Restoration uses to determine when and how revenue is recognized to ensure accurate financial management and reporting.