For City Publications, what was the amount of performance obligations satisfied at a point in time in 2022?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Deferred Non-refundable Franchise Fees: | ||||
| Balance beginning of year | $ | 56,679 | $ | 48,752 |
| Deferral of non-refundable franchise fees | 59,400 | 30,300 | ||
| Recognition of non-refundable franchise fees | (34,253) | (22,373) | ||
| Balance at end of year | $ | 81,826 | $ | 56,679 |
Disaggregation of Revenues
Disaggregated revenues based on the satisfaction of perf
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the amount of performance obligations satisfied at a point in time for the year 2022 was $1,124,154. This indicates the revenue recognized from services or products delivered to customers at a specific moment, as opposed to over a period. Understanding the breakdown between point-in-time and passage-of-time revenue recognition is crucial for assessing the revenue model of City Publications.
For a prospective franchisee, this figure provides insight into how City Publications generates revenue and when that revenue is recognized. A higher figure for point-in-time obligations might suggest that the business model relies more on immediate sales or services, while a higher figure for passage-of-time obligations could indicate recurring revenue streams. This distinction can influence a franchisee's operational strategies and cash flow management.
It's important to note that this is just one aspect of City Publications' financial performance. A potential franchisee should also consider other factors such as total revenues, expenses, and profitability to get a comprehensive understanding of the business's financial health. Comparing these figures across multiple years, as presented in the table, can reveal trends and provide a more informed basis for investment decisions.
Prospective franchisees should investigate what constitutes performance obligations satisfied at a point in time versus those satisfied over time. Understanding the specific services or products that fall into each category will allow a franchisee to better project their own revenue streams and manage their business effectively.