What amount of services were recognized at a point in time by Bor Restoration in 2022?
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, the amount of services recognized at a point in time during the year ending December 31, 2022, was $0. In contrast, Bor Restoration recognized $0 in services over time during the same period.
This means that Bor Restoration did not recognize any revenue from services at a specific point in time during 2022, choosing instead to recognize revenue over a period of time. This could be due to the nature of the services provided, where revenue recognition is more appropriate as the service is delivered rather than upfront.
A prospective franchisee should inquire about the specific types of services that generate revenue over time versus at a specific point, and understand the accounting practices that dictate this revenue recognition method. Understanding these accounting practices will help a franchisee better project and manage their cash flow.