What was Bor Restoration's deferred revenue at the end of 2021?
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 EQUITY Current Liabilities: | |||
| Accounts payable | $ 485 | $ 19 | $ 5,495 |
| Accrued expenses | 12,128 | 14,993 | 13,355 |
| Deferred revenue | 94,350 | ||
| Lease liability | 50,580 | ||
| Total Current Liabilities | 63,193 | 109,362 | 18,850 |
| Non-current Liabilities: | |||
| Lease liability | 31,861 | ||
| Total Liabilities | 95,054 | 109,362 | 18,850 |
| Owner's Equity: | |||
| Paid in capital |
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, the deferred revenue at the end of 2021 was $94,350. This figure is derived from the balance sheets as of December 31, 2022, 2021, and 2020, which are part of Bor Restoration's audited financial statements.
Deferred revenue represents payments Bor Restoration has received for services or goods that have not yet been fully earned or delivered. In the context of a franchise, this often includes initial franchise fees that are recognized over time as the franchise provides ongoing support and services to the franchisee. The deferred revenue balance reflects the portion of these upfront payments that Bor Restoration is obligated to fulfill in the future.
For a prospective Bor Restoration franchisee, understanding deferred revenue is crucial because it provides insight into the financial obligations and future service commitments of the franchisor. A higher deferred revenue balance may indicate a strong pipeline of future obligations, suggesting that Bor Restoration is actively expanding and has a vested interest in supporting its franchisees. Conversely, a declining balance could raise questions about the franchisor's growth trajectory or its ability to meet its existing commitments.
It is important to note that deferred revenue is a snapshot in time and can fluctuate based on various factors, including the timing of franchise sales, the recognition of revenue over the term of the franchise agreement, and the delivery of services to franchisees. Therefore, prospective franchisees should consider deferred revenue in conjunction with other financial metrics and qualitative factors when evaluating the overall health and stability of Bor Restoration.