Does Coffee News disaggregate revenue based on the timing of satisfaction of performance obligations?

According to Coffee News' 2025 Franchise Disclosure Document, the company does disaggregate revenue based on the timing of satisfaction of performance obligations. The document includes a table that breaks down revenue in this manner for the years ending December 31, 2024, 2023, and 2022.

This disaggregation provides insight into how Coffee News recognizes revenue from different sources over time. For instance, revenue from franchise sales is recognized over the term of the initial franchise agreement, which is generally four years, reflecting the ongoing support and content provided to franchisees. In contrast, revenue from royalty payments, training fees, and product promotional sales are recognized monthly, as they are earned at a specific point in time.

For a prospective Coffee News franchisee, this information is useful for understanding the financial reporting practices of the franchisor. It clarifies when and how Coffee News recognizes revenue, which can be helpful in assessing the company's financial performance and stability. Understanding these accounting policies can also assist franchisees in their own financial planning and management.