What was the amount of deferred revenue from renewal fees (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 | 92,837 |
| TOTAL LIABILITIES | 124,337 | 111,037 |
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 (long term) was $2,012 in 2023. This figure represents revenue that Canine Dimensions has received but not yet recognized as earned, specifically related to renewal fees paid by franchisees for a period extending beyond one year.
For a prospective Canine Dimensions franchisee, understanding deferred revenue is crucial because it reflects the financial health and stability of the franchisor. A consistent stream of deferred revenue from renewal fees indicates that franchisees are renewing their agreements, which can be a positive sign of franchisee satisfaction and the overall success of the Canine Dimensions system.
The decrease in deferred revenue from renewal fees (long term) from $2,712 in 2022 to $2,012 in 2023 could signal a potential issue. A prospective franchisee should inquire about the reasons for this decrease, such as changes in renewal rates, the number of renewals, or the timing of fee collection. This information can provide valuable insights into the long-term sustainability of the franchise model.
It's important to note that deferred revenue is a snapshot in time and can fluctuate based on various factors. A thorough understanding of Canine Dimensions' revenue recognition policies and historical trends is essential for making an informed investment decision. Prospective franchisees should consult with a financial advisor to fully assess the implications of deferred revenue on the overall financial health of the franchise.