What was the change to Brain Balance deferred revenue year-to-date?
Brain_Balance Franchise · 2025 FDDAnswer from 2025 FDD Document
| Feb-25 | |||
|---|---|---|---|
| Month | YTD | ||
| BBH BBF BBC EBITDA | ($190) | ($311) | |
| Ad Fund EBITDA | 22 | 35 | |
| Depreciation | - | - | |
| Amortization | (5) | (10) | |
| Other Income Interest | - | - | |
| Other Income | 2 | 4 | me Bridge |
| Other Expense | - | - | |
| Other Expense Taxes | - | - | |
| Other Expense Interest | (68) | (134) | Net Inco |
| Gain/Loss on Sale of Assets | - | - | |
| Gain on Loan Extinguishment | - | - | |
| Cash Flows from Operating Activities: | |||
| Net Income (Loss) | ($239) | ($416) | |
| Plus: Depreciation/Amortization | 5 | 10 | |
| Changes in Operating Assets and Liabilities: | |||
| Changes in Net Accounts Receivable | 228 | (85) | |
| Change to Inventory | (46) | (30) | |
| Changes to Prepaid Expenses and Other Assets | - | (36) | |
| Changes to Accounts Payable | (112) | (66) | |
| Changes to Sales and Used Tax Payable | - | - | |
| Changes to Accrued Liabilites and Other Liabilities | 168 | 392 | |
| Changes to Accrued Income Taxes Liabilities | - | - | |
| Changes to Deferred Income Taxes Assets | - | - | |
| Changes to Deferred Revenue | 5 | 202 |
Source: Item 23 — RECEIPTS (FDD pages 72–292)
What This Means (2025 FDD)
According to Brain Balance's 2025 Franchise Disclosure Document, the change to deferred revenue year-to-date is $202. This figure is part of the cash flow statement as of February 28, 2025. Deferred revenue represents payments Brain Balance has received for services or products that have not yet been delivered or recognized as earned revenue.
For a prospective franchisee, an increase in deferred revenue could indicate growing sales and customer demand. It means Brain Balance is collecting more money upfront for future services. However, it's important to understand the specific reasons behind this change. A significant increase in deferred revenue might also mean that Brain Balance needs to fulfill those obligations in the future, which could impact their operational capacity and expenses.
Franchisees should inquire about the components of deferred revenue, such as the proportion related to initial franchise fees versus ongoing services. Understanding these details can provide insights into the sustainability and predictability of Brain Balance's revenue streams. Additionally, franchisees should assess how changes in deferred revenue might affect the support and resources available to them as they operate their own centers.