What was the total amount of long-term liabilities reported by 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 |
| 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's 2025 Franchise Disclosure Document, the total long-term liabilities for Canine Dimensions in 2023 amounted to $102,637. This figure is composed of two components: deferred revenue from initial franchise fees, totaling $100,625, and deferred revenue from renewal fees, which amounted to $2,012.
Long-term liabilities represent obligations that Canine Dimensions owes, which are not expected to be settled within one year. The deferred revenue components specifically relate to franchise and renewal fees that Canine Dimensions has received but not yet recognized as earned revenue. This is a common accounting practice in franchising, where initial and renewal fees are often recognized over the term of the franchise agreement rather than immediately upon receipt.
For a prospective Canine Dimensions franchisee, understanding the franchisor's liabilities can provide insights into the company's financial stability and how it manages its obligations. A significant amount of deferred revenue could indicate strong future revenue streams, as it represents fees already collected for services to be provided over time. However, it is also important to consider the overall financial health of Canine Dimensions to ensure that the company can meet its obligations and support its franchisees effectively.
Reviewing the complete financial statements, including the balance sheets, income statements, and cash flow statements, along with the accompanying notes, will provide a more comprehensive understanding of Canine Dimensions's financial position. Consulting with a financial advisor is recommended to assess the financial health and stability of Canine Dimensions before making an investment decision.