What was the amount of Buona's contract liabilities for the fiscal year ended 2023?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
new franchise agreement. In the event that the deadline passes, ADA fees are recognized as non-refundable revenue.
NOTE 3 – BUONA BEEF FRANCHISE OPERATIONS ACQUIRED/SOLD:
At December 31, 2023, the Company is not obligated to acquire any franchises and no franchises have been opened during the year.
NOTE 4 – CONTRACT BALANCES:
Contract assets include accounts receivable. The beginning balance of accounts rece
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the company's contract liabilities for the fiscal year ended December 31, 2023, totaled $222,917. These liabilities are related to advance consideration received from franchise owners for services that are part of the contract performance obligations, as well as deposits for training fees. These liabilities are included in deferred revenue and deposits for training fees on the balance sheets.
For a prospective Buona franchisee, this means that Buona holds a significant amount in contract liabilities, indicating that they have received payments for services or training not yet fully delivered as of the end of 2023. This could reflect the scale of new franchise agreements signed or training programs scheduled but not yet completed during that period.
Understanding the nature and duration of these contract liabilities is important for assessing Buona's financial health and operational efficiency. Franchisees may want to inquire about the specific services or training covered by these liabilities and the timeline for their fulfillment to gauge the company's ability to meet its obligations.