What is the deferred revenue for the Canine Dimensions initial fee, current?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| Deferred Revenue - Initial Fee, Current | 21,000 | 21,000 |
|---|---|---|
| Deferred Revenue - Renewal Fee, Current | 700 | 700 |
| TOTAL CURRENT LIABILITIES | 21,700 | 21,700 |
Source: Item 23 — RECEIPTS (FDD pages 36–148)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, the deferred revenue for the initial fee, current, is $21,000. This figure represents the amount of initial franchise fees that Canine Dimensions has received but not yet recognized as earned revenue on its financial statements.
Deferred revenue typically arises when Canine Dimensions receives payment for services or rights that will be provided to the franchisee over a period of time. The initial franchise fee usually covers various services, training, and support provided to the franchisee during the initial setup phase and sometimes beyond. Because these services are delivered over time, the revenue recognition is deferred to match the period when the services are actually rendered.
For a prospective Canine Dimensions franchisee, understanding the deferred revenue is important as it reflects the franchisor's accounting practices and how they recognize revenue related to initial fees. It also provides insight into the financial obligations Canine Dimensions has to its franchisees in terms of delivering ongoing services and support. This figure, along with other financial statement details, can help a potential franchisee assess the financial health and stability of the Canine Dimensions franchise system.