For the fiscal year ended December 31, 2023, what was the revenue recognized during the year for Carvel?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
| Depreciation and amortization expense | 2 47 | 3 00 | 2 ,037 |
|---|---|---|---|
| Provision for (recoveries from) credit losses | 655 | 3 | ( 289) |
| Changes in operating assets and liabilities: | |||
| Accounts receivable, prepaid expenses and other assets | (7,409) | ( 5,708) | ( 2,295) |
| Accrued expenses and other liabilities | 668 | 4 73 | ( 125) |
| Deferred revenue | 4,274 | ( 1,626) | 2 ,100 |
| Intercompany receivable / payable | ( 1,816) | 2 ,040 | ( 495) |
| Net cash provided by operating activities | 250,583 | 244,472 | 2 09,644 |
| Cash flows from investing activities: | |||
| Purchases of assets held for lease | (37) | ( 220) | ( 197) |
| Net cash used in investing activities | (37) | ( 220) | ( 197) |
| Cash flows from financing activities: | |||
| Distributions to Member, net | (251,656) | ( 243,307) | ( 208,262) |
| Net cash used in financing activities | (251,656) | (243,307) | ( 208,262) |
| Net increase (decrease) in Cash and cash equivalents and | |||
| Restricted cash - securitization | (1,110) | 9 45 | 1,185 |
| Cash and cash equivalents and Restricted cash - securitization, | |||
| beginning of year |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, deferred revenue recognized during the year ended December 31, 2023, was ($10,569). This indicates a decrease in deferred revenue from the beginning of the year.
Deferred revenue represents payments Carvel has received for goods or services that have not yet been fully delivered or earned. The negative value implies that Carvel recognized $10,569 of previously deferred revenue as actual revenue during the 2023 fiscal year as they fulfilled their obligations.
For a prospective franchisee, understanding deferred revenue is crucial because it reflects Carvel's ability to convert advance payments into recognized revenue. A consistent or growing trend in revenue recognition from deferred sources could indicate a stable business model and reliable service delivery. However, it is important to also consider the deferrals due to cash received and other, which was $8,944, to understand the overall changes in deferred revenue.