What was the total balance of deferred non-refundable franchise fees for City Publications at the end of 2023?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
l recently issued Accounting Standards Updates ("ASU"). The adoption of the recently issued ASUs, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.
NOTE 2 – CONTRACTS WITH CUSTOMERS
The Company has recorded a liability for unearned revenue associated with the performance obligation of the Company's franchise agreements. The account bala
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the balance of deferred non-refundable franchise fees at the end of 2023 was $56,679. This figure represents the amount of franchise fees that City Publications had collected but not yet recognized as revenue as of December 31, 2023. These fees are non-refundable, meaning franchisees will not get this money back under any circumstances.
The deferred revenue balance changes over time due to two factors: the deferral of new franchise fees and the recognition of previously deferred fees as revenue. For City Publications, the deferral of non-refundable franchise fees amounted to $30,300 during 2023, while the recognition of non-refundable franchise fees was $22,373.
For a prospective City Publications franchisee, this information provides insight into the company's accounting practices and revenue recognition. It's important to understand how franchise fees are treated, as this can affect the franchisor's reported financial performance. The deferred revenue balance is a liability on the balance sheet, representing City Publications' obligation to provide services or fulfill other requirements in the future in exchange for the fees already collected.