What was the amount of deferred revenue from renewal fees (current) for Canine Dimensions in 2022?
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 | 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 renewal fees (current) was $700 in 2022. This liability represents revenue that Canine Dimensions has received but not yet earned because the renewal service has not yet been fully provided.
For a prospective franchisee, understanding deferred revenue is crucial because it reflects the financial obligations Canine Dimensions has to its existing franchisees. A consistent amount in deferred revenue from renewal fees could indicate stable renewal rates and continued service agreements.
However, it is important to note that this figure only represents the 'current' portion, meaning the amount expected to be recognized as revenue within the next year. There is also a 'long term' portion of deferred revenue from renewal fees, which was $2,712 in 2022. Reviewing both current and long-term deferred revenue provides a more complete picture of Canine Dimensions' financial obligations related to renewal fees.