What was the amount of deferred revenue - initial fee, long term, for Canine Dimensions in 2023?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | 2023 | 2022 |
|---|---|---|
| CURRENT ASSETS | ||
| Cash | 406,640 | 245,263 |
| FIXED ASSETS | ||
| Automobile | 31,923 | 31,923 |
| Less: Accumulated Depreciation | (23,271) | (19,200) |
| Net Fixed Assets | 8,652 | 12,723 |
| OTHER ASSETS | ||
| Franchise Costs | 40,329 | 40,329 |
| Security Deposit | 9,800 | - |
| Total Other Assets | 50,129 | 40,329 |
| TOTAL ASSETS | 465,421 | 298,315 |
| 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 |
| LONG TERM LIABILITIES | ||
| Deferred Revenue - Initial Fee, Long Term | 100,625 | 90,125 |
| Deferred Revenue - Renewal Fee, Long Term | 2,012 | 2,712 |
| TOTAL LONG TERM LIABILITIES | 102,637 |
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, long term, was $100,625 in 2023. This liability represents initial franchise fees that Canine Dimensions has collected but not yet recognized as earned revenue.
Deferred revenue typically arises when Canine Dimensions receives payment upfront for services or rights that will be provided over an extended period. In this case, the initial franchise fee is recognized as revenue gradually over the term of the franchise agreement. The long-term portion indicates that this revenue will be recognized beyond the next 12 months.
For a prospective Canine Dimensions franchisee, this deferred revenue figure provides insight into the financial structure of the franchise. It reflects the amount of initial fees that Canine Dimensions is still obligated to earn through ongoing services and support to its franchisees. It's also worth noting that in 2022, the deferred revenue - initial fee, long term was $90,125, showing an increase of $10,500 in 2023.