What was the amount of deferred revenue from initial fees (long term) for Canine Dimensions in 2023?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
- | | 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 | 92,837 | | TOTAL LIABILITIES | 124,337 | 111,037 | | MEMBER'S EQUITY | 341,084 | 187,278 | | TOTAL LIABILITIES AND MEMBER'S EQUITY | 465,421 | 298,315
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the deferred revenue from initial fees (long term) for 2023 was $100,625. This figure represents the portion of initial franchise fees that Canine Dimensions has received but not yet recognized as earned revenue under accrual accounting principles.
Deferred revenue typically arises when Canine Dimensions receives upfront payments for services or rights that will be provided over an extended period. Instead of recognizing the entire payment as revenue immediately, the company defers recognition until the services are rendered or the rights are utilized by the franchisee. This accounting practice ensures that revenue is matched with the actual delivery of services or usage of rights, providing a more accurate representation of Canine Dimensions' financial performance over time.
For a prospective Canine Dimensions franchisee, this deferred revenue balance indicates the financial obligations Canine Dimensions has to its franchisees. It reflects the company's commitment to provide ongoing support, training, and brand usage rights in the future. Monitoring the trend of deferred revenue can offer insights into the company's growth and its ability to fulfill its obligations to franchisees.