What were the total long term liabilities 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 |
| 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 company's total long-term liabilities for the year 2023 were $102,637. These liabilities consist of deferred revenue related to initial franchise fees and renewal fees that extend beyond the current year. Specifically, $100,625 is attributed to deferred initial franchise fees, and $2,012 is from deferred renewal fees.
Deferred revenue represents payments Canine Dimensions has received for services or products that will be delivered in the future. In this case, the initial and renewal fees are recognized as revenue over the term of the franchise agreement, rather than entirely in the year they are received. This accounting practice aligns revenue recognition with the actual delivery of the franchise services over time.
For a prospective franchisee, understanding the franchisor's liabilities can provide insights into the financial stability and obligations of the company. While deferred revenue is technically a liability, it also indicates that Canine Dimensions has secured future income streams from its franchisees. Monitoring these liabilities over time can help assess the company's growth and sustainability.