What is the total deferred revenue that Carvel expects to recognize in 2025 related to partially satisfied performance obligations?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
erred revenue and Long-term deferred revenue | $ 53,388 | $ 49,115 |
The Company expects to recognize revenue in the future related to performance obligations that are partially satisfied at the end of the year:
| 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 year $ 49,115 $ 50,740 | |
| Revenue recognized during the year (9,152) (10,569) | |
| Deferrals due to cash received and other 13,425 8 ,944 |
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the company anticipates recognizing revenue in the future related to performance obligations that are partially satisfied at the end of the year. For the fiscal year 2025, Carvel expects to recognize $3,346 related to these partially satisfied performance obligations.
This deferred revenue recognition relates to franchise and development fees from open stores. Carvel recognizes these fees over time, as opposed to at a single point. This accounting practice reflects the ongoing obligations Carvel has to its franchisees, such as providing support and maintaining the brand.
It is important to note that this figure does not include deferred revenue related to unopened stores (referred to as SBRs in the document). The deferred revenue for open SBRs is listed separately in the document. Understanding the distinction between revenue recognition for open versus unopened locations is crucial for assessing Carvel's financial performance and forecasting future revenue streams.