What was the increase in Card My Yard's contract liabilities for fees received for the 2022 conference?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Increase for fees received for 2022 conference | 36,525 |
|---|---|
| Balance at December 31, 2021 | $ 210,125 |
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the increase in contract liabilities for fees received for the 2022 conference was $36,525. This figure represents the additional unearned revenue Card My Yard collected in advance for the conference held in 2022.
Contract liabilities, also known as deferred revenue, are payments Card My Yard receives for goods or services that have not yet been delivered or performed. In this case, franchisees paid fees to attend the 2022 conference before the conference actually took place. This prepayment creates an obligation for Card My Yard to provide the conference for which they've already been paid.
For a prospective Card My Yard franchisee, this indicates that the company hosts conferences and collects fees for them in advance. The conference fees contribute to Card My Yard's overall financial picture. Understanding the details of these conferences, such as their content, frequency, and cost, could be a valuable part of a franchisee's due diligence.