What was the total amount of Crisp & Green's deferred revenue in the provided financial data?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
nd 2021, there were 149, 165, and 96, respectively, franchise agreements signed but not in operation.
NOTE 7 SUBSEQUENT EVENTS
Management has evaluated subsequent events through April 29, 2024, the date at which the financial statements were available for issue and does not believe that there are any subsequent events that require adjustment or disclosure in the accompanying financial statements.
Crisp and Green Franchising LLC Balance Sheet
As of March 31, 2024
| Mar 31, 24 | ||
|---|---|---|
| ASSETS | ||
| Current Assets | ||
| Cash | $ | 100 |
| Accounts Re |
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, as of March 31, 2024, the company had deferred revenue, net of current amount, totaling $7,806,600. This deferred revenue represents payments Crisp & Green has received for goods or services that have not yet been fully provided or earned. In the context of franchising, this often includes initial franchise fees or other upfront payments that are recognized as revenue over time as the franchise agreement progresses.
For a prospective Crisp & Green franchisee, this figure indicates the magnitude of financial obligations the company has to its franchisees. It reflects the value of services or support that Crisp & Green is contractually bound to provide in the future. Understanding the nature and timing of revenue recognition associated with these deferred amounts is crucial for assessing the company's financial health and future obligations.
It is important to note that this deferred revenue is 'net of current amount,' suggesting that a portion of the total deferred revenue may be recognized within the coming year as current revenue. Further analysis of the complete financial statements and related notes would be necessary to fully understand the composition and timing of the recognition of this deferred revenue. A prospective franchisee should seek clarification from Crisp & Green regarding the specific services or obligations covered by this deferred revenue and the schedule for its recognition.