What was the amount of deferred revenue - initial fee, current, for Canine Dimensions in 2022?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| LIABILITIES AND MEMBER'S EQUITY | | CURRENT LIABILITIES | | Deferred Revenue - Initial Fee, Current | 21,000 | 17,500 | | Deferred Revenue - Renewal Fee, Current | 700 | 700 | | TOTAL CURRENT LIABILITIES | 21,700 | 18,200 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the deferred revenue - initial fee, current, was $17,500 in 2022. This liability represents initial franchise fees that Canine Dimensions has collected but not yet recognized as earned revenue.
In practical terms, this means that as of the end of 2022, Canine Dimensions had received $17,500 from franchisees for initial fees, but the services or obligations related to those fees were not yet fully completed. Therefore, the revenue recognition is deferred to a future period when the services are rendered.
For a prospective franchisee, this deferred revenue figure provides insight into the company's financial obligations and revenue recognition practices. It reflects the initial fees that Canine Dimensions holds as a liability until the corresponding services or obligations are fulfilled. Reviewing these figures over time can help assess the stability and growth of the franchise system.