What was the total balance of amortizing contracts for Brueggers Bagels as of December 31, 2024?

According to Brueggers Bagels' 2025 Franchise Disclosure Document, the total balance of amortizing contracts as of December 31, 2024, was $6,003,000. This figure is derived from a table summarizing changes to unamortized upfront fees received from franchisees. These fees are associated with contracts that are amortized over a period of time. The table provides a breakdown of the amortizing and non-amortizing components. The amortizing balance was $3,578,000 and the non-amortizing balance was $2,425,000. The total of these two balances is the $6,003,000.

Specifically, the table details the beginning balance at December 27, 2022, then accounts for additions and subtractions related to upfront fees and voided contracts. Additions include upfront fees associated with amortizing contracts that were effective in prior periods due to the adoption of ASC 606, as well as fees associated with contracts that became effective during the fiscal year ended December 31, 2024. Reductions primarily consist of revenue recognized from these unamortized upfront fees and adjustments for voided contracts prior to store opening.

For a prospective Brueggers Bagels franchisee, this information is useful for understanding how the franchisor recognizes revenue from initial franchise fees over time. The amortization of these fees reflects the services and benefits Brueggers Bagels provides to franchisees throughout the term of the franchise agreement. The changes in the balance from year to year can indicate the rate of new franchise sales and the recognition of revenue from existing franchisees. Understanding the amortization schedule can help a franchisee better assess the financial health and revenue recognition practices of Brueggers Bagels.