What was the total amount of Crisp & Green's deferred revenue in 2023?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
| CURRENT LIABILITIES | |||||
|---|---|---|---|---|---|
| Accounts Payable | $ 34,448 | $ 2 ,136 | $ | - | |
| LONG TERM LIABILITIES | |||||
| Deferred Revenue | 7,412,300 | 8,175,200 | 4,496,300 | ||
| Total Liabilities | 7,446,748 | 8,177,336 | 4,496,300 |
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the company's deferred revenue for 2023 was $7,412,300. This figure represents revenues that Crisp & Green has received but not yet earned as of the end of the fiscal year. These funds are classified as a long-term liability on the balance sheet.
Deferred revenue typically arises from franchise fees or other payments received upfront for services or products that will be delivered over a period of time. For a prospective Crisp & Green franchisee, this indicates the amount of future service or product delivery obligations that the franchisor has to its existing franchisees.
It's important to note that deferred revenue is a common accounting practice in franchising and other industries where payments are received in advance of providing goods or services. Monitoring the deferred revenue balance can provide insights into the financial stability and future obligations of Crisp & Green.