What were the total franchise fee revenues for Coffee News in 2024?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
alizes equipment with an estimated useful life greater than one year.
Notes to Financial Statements
December 31, 2024, 2023 and 2022
1. Summary of Significant Accounting Policies
Revenue Recognition
Revenue from the collection of royalty payments, training fees, and product promotional sales are recognized monthly since they are earned at a point in time. Revenues from the sale of franchises are recognized over the term of the initial franchise agreement, generally four years. The Company provides franchisees wit
Source: Item 23 — Receipts (FDD pages 36–118)
What This Means (2025 FDD)
Based on the 2025 Coffee News Franchise Disclosure Document, the revenue from the sale of franchises is recognized over the term of the initial franchise agreement, which is generally four years. This means that the initial franchise fee revenue isn't fully recognized in the year the franchise is sold, but rather spread out over the four-year term.
The document does not explicitly state the total franchise fee revenue recognized in 2024. However, it does mention that revenue from royalty payments, training fees, and product promotional sales are recognized monthly as they are earned. It also mentions advertising costs of $41,044 for the year ended 2024.
To determine the total franchise fee revenue for 2024, a prospective franchisee should ask Coffee News for a detailed breakdown of their revenue recognition, specifically how much initial franchise fees contributed to the total revenue in 2024. This information would be helpful in understanding the financial performance and revenue streams of Coffee News.