What was the deferred revenue for Casa De Corazon at the end 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 revenues on the accompanying Balance Sheets. A summary of significant changes in deferred revenues are as follows:
| 2024 | 2023 | 2022 |
|---|
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 revenue at the end of 2024 was $187,987. This deferred revenue represents payments Casa De Corazon has received for which they have not yet provided the associated services or products. In this case, it primarily relates to initial franchise fees.
The deferred revenue balance changes over time. The beginning of year deferred revenue for 2024 was $142,734. During 2024, Casa De Corazon received additional initial franchise fees totaling $70,000. However, Casa De Corazon recognized $24,747 of deferred revenue during the year.
For a prospective franchisee, understanding deferred revenue is crucial because it reflects the financial obligations Casa De Corazon has to its franchisees. A higher deferred revenue balance could indicate strong future revenue recognition, but it also represents a liability for services yet to be rendered. It is important to note that these figures are unaudited, as indicated in the provided financial statement disclosures.