How much revenue did Bor Restoration recognize at a point in time during 2023?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
table provides information about significant changes in deferred revenue on franchise fees for the year ended December 31,:
| | 2023 | 2022 | 2021 | |-------------------------------------------------------------------
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, 2023, the company recognized $4,095,298 of services over time. The document specifies that no services were recognized at a point in time during that year.
This means that Bor Restoration recognizes revenue for its services as they are performed over a period of time rather than all at once when a service is completed. This approach to revenue recognition could be due to the nature of the remediation services, which may span multiple days or weeks.
For a prospective franchisee, this information is relevant in understanding how Bor Restoration accounts for its revenue. It suggests that the company's financial performance is evaluated based on the ongoing delivery of services rather than immediate transactions. This could affect how franchisees track their own revenue and manage their financial reporting in accordance with Bor Restoration's standards.