What was the amount of revenue recognized by Carvel during the fiscal year ended December 31, 2023?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
evaluated events occurring subsequent to December 29, 2024 through March 7, 2025, the date these consolidated financial statements were available for issuance, and determined that no subsequent event required recognition or disclosure.
2 Revenue
The Company recognizes franchise revenues, Company SBR revenues, franchise and other rental revenues, and advertising funds revenues as the related performance obligations are satisfied.
The Company generally recognizes revenue associated with franchise and development fees of open SBRs over time. The Company's other revenue streams are generally recognized at a point in time.
Franchise revenues are disaggregated by the timing of recognition as follows:
| December 29, | December 31, | |
|---|---|---|
| For the fiscal years ended: | 2024 | 2023 |
| Franchise revenues satisfied over time | $ 4,398 | $ 5,600 |
| Franchise revenues satisfied at a point in time | 344,654 | 331,846 |
| Franchise revenues | $ 349,052 | $ 337,446 |
Changes in deferred franchise and development fees are as follows:
| December 29, | December 31, | |
|---|---|---|
| For the fiscal years ended: | 2024 | 2023 |
| Deferred revenue at the beginning of the period | $ 58,511 | $ 60, |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, there are multiple categories of revenue recognized during the fiscal year ended December 31, 2023. Franchise revenues satisfied at a point in time totaled $331,846, while franchise revenues satisfied over time amounted to $5,600. This brings the total franchise revenues to $337,446 for 2023.
In addition to franchise revenues, Carvel also recognized operating lease income of $9,240 and variable lease income of $112, resulting in franchise and other rental revenues of $9,352 for the fiscal year ended December 31, 2023.
Furthermore, the deferred revenue recognized during the year was ($10,569) for the fiscal year ended December 31, 2023. It is important to note that this figure is presented as a negative value, indicating a reduction in deferred revenue as it is recognized. A prospective franchisee should consider all these revenue streams and deferred revenue adjustments to understand Carvel's overall financial performance.