What was the amount of deferred franchise fees for Caring Senior Service in 2024?

According to Caring Senior Service's 2025 Franchise Disclosure Document, the total franchise sales and renewal fees received for the year ending December 31, 2024, amounted to $220,401. A portion of these fees is recorded as deferred franchise fees. As of December 31, 2024, the deferred franchise fees for Caring Senior Service were recorded as $133,181. These fees are deferred according to specific accounting standards (ASU-2021-02) related to revenue from contracts with customers.

The deferred franchise fees are not immediately recognized as income. Instead, Caring Senior Service amortizes these fees into income over the term of the franchise agreements. This accounting practice aligns the revenue recognition with the period during which the franchisor provides services and support to the franchisee.

For a prospective Caring Senior Service franchisee, this means that the initial franchise fee paid may not be fully recognized as income by the franchisor in the year it is received. Instead, it is spread out over the life of the franchise agreement. This can affect the franchisor's financial statements and may provide a more accurate picture of their ongoing revenue and profitability. Franchisees should be aware of this accounting treatment as it reflects the long-term relationship and support they receive from Caring Senior Service.