For Coffee News, what do revenues from performance obligations satisfied at a point in time consist of?

According to Coffee News' 2025 Franchise Disclosure Document, revenues from performance obligations satisfied at a point in time include monthly royalty fees, local advertising sales, promotional product sales, and seminar fees. This means that Coffee News recognizes these revenues when the service or product is transferred to the franchisee.

For a Coffee News franchisee, this means that the revenue from these sources is recognized monthly as the franchisee receives the benefit of these services or products. This is in contrast to the revenue from the initial franchise sale contracts, which is recognized over the four-year term of the agreement.

This revenue recognition method is typical in franchising for ongoing services and product sales, as it reflects the transfer of value to the franchisee. Understanding how revenue is recognized is important for franchisees to accurately assess their financial performance and profitability.