For Checkersrallys, what was the amount of revenue recognized during the period related to deferred franchise fees in 2024?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2024 | |
|---|---|---|
| Deferred franchise fees at beginning of period | $9,654 $ | 10,109 |
| New deferrals due to cash received and other | 439 | 403 |
| Revenue recognized during the period | (1,068) | (858) |
| Deferred franchise fees at end of period | $9,025 $ | 9,654 |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the revenue recognized during the period related to deferred franchise fees in 2024 was $1,068. This indicates the amount of previously deferred franchise fees that Checkersrallys recognized as revenue during that year.
Deferred franchise fees typically arise when Checkersrallys receives initial franchise fees but hasn't yet fulfilled all of its obligations to the franchisee, such as providing training or site selection assistance. These fees are initially recorded as deferred revenue and then recognized as actual revenue as Checkersrallys fulfills its obligations.
For a prospective Checkersrallys franchisee, this information provides insight into how the company recognizes revenue and manages its financial obligations. It also shows the magnitude of deferred revenue that Checkersrallys has on its books, which can be an indicator of future revenue streams. Understanding these accounting practices can help a franchisee assess the financial stability and reporting practices of Checkersrallys.