What is the amount of deferred revenue for open SBRs for Carvel as of December 29, 2024?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 29, | December 31, | ||
|---|---|---|---|
| 2024 | 2023 | ||
| Weighted-average remaining lease term (years) | 10.0 | 9.7 | |
| 2025 | $ 3,348 | ||
| -------------------------------- | |||
| 2026 | 2,875 | ||
| 2027 | 2,730 | ||
| 2028 | 2,563 | ||
| 2029 | 2,335 | ||
| Thereafter | 18,589 | ||
| Deferred revenue for open SBRs | $ 32,440 |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, as of December 29, 2024, the deferred revenue for open SBRs (presumably Store Based Restaurants) is $32,440. This figure represents revenue that Carvel has received but not yet recognized as earned, as it relates to ongoing obligations to franchisees with open locations.
This deferred revenue will be recognized over time, typically over the term of the franchise agreements. For a prospective Carvel franchisee, this indicates the financial structure of franchise fee payments and how Carvel accounts for these payments over the life of the franchise agreement. It reflects the future revenue Carvel expects to realize from its existing franchise network.
It is important to note that an additional $24,501 in deferred revenue is associated with unopened SBRs, which is not included in the $32,440 figure. This revenue will be recognized once those locations open. Understanding the distinction between deferred revenue for open and unopened locations can provide a clearer picture of Carvel's financial obligations and future revenue streams.
The deferred revenue figures provide insight into Carvel's accounting practices and revenue recognition policies, which are standard for franchise operations. Prospective franchisees should review these figures in conjunction with other financial statements and disclosures to assess the overall financial health and stability of the Carvel franchise system.