What was the amount of revenue recognized during the year 2023 for Chatime?
Chatime Franchise · 2025 FDDAnswer from 2025 FDD Document
ummary of significant changes in deferred revenues during the years ended December 31, 2024 and 2023, is as follows:
| 2024 | 2023 | |
|---|---|---|
| Deferred revenue - beginning of year | $ 326,995 $ | - |
| Revenue recognized during the year | (52,531) | (2,706) |
| Addi |
Source: Item 23 — Receipts (FDD pages 58–262)
What This Means (2025 FDD)
According to Chatime's 2025 Franchise Disclosure Document, the revenue recognized during the year 2023 was a negative amount, specifically ($2,706). This figure reflects the revenue Chatime recognized during that period. It is important to note that this value is related to deferred revenue.
Deferred revenue represents payments Chatime received in advance for goods or services that had not yet been delivered or performed. The negative value for revenue recognized in 2023 suggests that Chatime reduced its deferred revenue balance by $2,706, recognizing this amount as earned revenue during that year. This adjustment could be due to the fulfillment of obligations related to initial franchise fees or other services for which payment was previously received.
For a prospective Chatime franchisee, understanding deferred revenue and its recognition is crucial. It provides insight into how Chatime accounts for initial franchise fees and other advance payments. The table also shows that the beginning deferred revenue for 2024 was $326,995 and additions for initial franchise fees were $329,701 in 2023, further illustrating the dynamics of deferred revenue within the franchise system. Reviewing these figures over multiple years can help a franchisee assess the stability and growth of Chatime's revenue streams.