What was the deferred revenue for Casa De Corazon at the beginning of 2024?
Casa_De_Corazon Franchise · 2025 FDDAnswer from 2025 FDD Document
t over the life of the note of $64,057.
NOTE 4 – CONTRACT BALANCES
Contract liabilities are comprised of unamortized initial franchise fees received from franchisees, which are presented as deferred re
Source: Item 23 — RECEIPTS (FDD pages 51–215)
What This Means (2025 FDD)
According to Casa De Corazon's 2025 Franchise Disclosure Document, the deferred revenues at the beginning of 2024 were $142,734. Deferred revenue represents payments Casa De Corazon has received for services or goods that have not yet been provided or delivered. In the context of franchising, this often relates to initial franchise fees.
Deferred revenue is recognized as actual revenue over time as Casa De Corazon fulfills its obligations under the franchise agreement. For example, the initial franchise fee might be recognized over the term of the franchise agreement, which the FDD states is typically ten years.
For a prospective Casa De Corazon franchisee, this figure indicates the amount of revenue the franchisor has already collected but hasn't yet earned. Reviewing the changes in deferred revenue over the years, as shown in the table, can provide insights into the pace of new franchise sales and how quickly Casa De Corazon is recognizing revenue from its existing franchisees.