What was the increase in deferred franchise fees and deposits for Creative World School in 2024?
Creative_World_School Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | - | - | - | 616,858 | 616,858 | | | Balance at | | | | | | | | December 31, 2024 | $ 75 | $ 7,425 | $ 6 0,456 | $ 1,272,073 | | $ 1,340,029 | Amortization expense for the years ended December 31, 2024, 2023 and 2022 was $0, $0 and $39,638, respectively.
NOTE D - DEFERRED FRANCHISE DEPOSITS
The Company receives refundable deposits on prospective franchise sales contracts. Terms of the sales contracts call for approval of school sites befo
Source: Item 23 — RECEIPTS (FDD pages 80–247)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Creative World School receives refundable deposits on prospective franchise sales contracts. These deposits are contingent upon the approval of school sites before they become nonrefundable. Additionally, Creative World School collects $5,000 deposits from prospects who commit to researching potential school locations, which are refundable if the prospect decides not to proceed.
However, the provided excerpts from the FDD do not include specific figures for the total amount of deferred franchise fees and deposits held by Creative World School at the end of 2023 or 2024. Without these figures, it is impossible to calculate the increase in deferred franchise fees and deposits during 2024.
A prospective franchisee should ask Creative World School for the balance sheet figures showing deferred franchise fees and deposits for both 2023 and 2024. This information is essential to understanding the company's financial position and the trend in these liabilities.