For Boulder Designs, what total amount of contract liabilities are expected to be recognized in 2026?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
--------|----|--------------|--------------| | | | 2024 | 2023 | | Beginning of period | $ | 3,778,593 | 2,075,712 | | Revenue recognized in period | | (601,349) | (1,240,590) | | Increase, excluding amounts recognized | | | | | during period | _ | 844,393 | 2,943,471 | | | | | | | End
Source: Item 23 — RECEIPT (FDD pages 50–217)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, the total amount of contract liabilities expected to be recognized in 2026 is $439,498. These contract liabilities represent deferred revenue from franchise fees, transfer fees, and successor franchise fees. Boulder Designs recognizes this revenue over the term of the franchise agreement.
For a prospective franchisee, this figure indicates the amount of revenue that Boulder Designs anticipates recognizing in 2026 from existing franchise agreements. It reflects the financial obligations Boulder Designs has to its franchisees for services or products not yet fully delivered. Understanding the schedule of contract liability recognition can provide insight into the franchisor's financial planning and revenue forecasting.
It's important to note that this is just one component of Boulder Designs' overall financial picture. A potential franchisee should review the complete financial statements and notes within the FDD, and consult with a financial advisor, to gain a comprehensive understanding of the franchisor's financial health and stability. This includes analyzing assets, liabilities, and revenue streams to assess the long-term viability of the franchise system.