What was Bor Restoration's deferred revenue at the end of 2020?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate to those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
JDS Professional Group
March 21, 2023
Balance Sheets
As Of December 31, 2022, 2021, and 2020
Page -3-
| 2022 | 2021 | 2020 | |
|---|---|---|---|
| ASSETS | |||
| Current Assets: | |||
| Cash | $ 513,933 | $ 204,415 | $ 185,894 |
| Accounts receivable | 105,281 | 71,657 | 45,896 |
| Prepaid expenses | 2,688 | 119,713 | |
| Total Current Assets | 621,902 | 395,785 | 231,790 |
| Non-current Assets: | |||
| Right-of-use asset, net of accumulated | - 0 - 04 | ||
| amortization of $46,569 | 79,703 | 0.010 | |
| Other assets | 32,246 | 18,218 | 8,013 |
| Total Non-current Assets | 111,949 | 18,218 | 8,013 |
| TOTAL ASSETS | $ 733,851 | $ 414,003 | $ 239,803 |
| LIABILITIES AND OWNER'S EQ |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the company's deferred revenue at the end of 2020 was $0. This figure is found within the balance sheets detailing the assets, liabilities, and owner's equity for the years 2020, 2021, and 2022. Deferred revenue represents payments Bor Restoration has received for services or products that have not yet been delivered or earned.
For a prospective Bor Restoration franchisee, understanding deferred revenue is crucial because it reflects the company's financial obligations to provide future services. A high deferred revenue balance might indicate strong future revenue streams, but also signifies a responsibility to fulfill those obligations. Conversely, a low deferred revenue balance, as was the case for Bor Restoration in 2020, could suggest that the company recognizes revenue relatively quickly or has fewer advance payments.
It's important to note that deferred revenue can fluctuate based on various factors, including the timing of franchise fee payments and the delivery of initial training and support. Franchisees should monitor these trends to assess the financial health and stability of Bor Restoration. Reviewing the notes to the financial statements provides additional context and details about the nature of deferred revenue and how it is recognized over time.