When does Casa De Corazon recognize revenue from training fees?

According to Casa De Corazon's 2025 Franchise Disclosure Document, the company considers training fee revenue as a separate performance obligation from the franchise fee. Casa De Corazon recognizes this revenue after the completion of the training services.

This means that Casa De Corazon does not recognize the training fee as revenue until the training is fully provided to the franchisee. This accounting practice ensures that revenue recognition aligns with the actual delivery of the training service.

For a prospective franchisee, this indicates that the training fees paid to Casa De Corazon are not recognized as revenue by the company until after the franchisee has received the complete training. This policy is important for financial transparency and ensures that Casa De Corazon's revenue recognition is tied to the fulfillment of its obligations to the franchisee.