What was the amount of Deck Medic's deferred revenue - current portion in 2021?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
the franchise contract liability balances during the years ended December 31, 2022 and 2021, respectively. Franchise contract liability is included in deferred revenue on the accompanying balance sheets.
| 2022 | 2021 | |
|---|---|---|
| Beginning balance | $20,250 | $- |
| Additional deferred revenue | 2 | 37,500 |
| Revenue recognized – ad |
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the deferred revenue, less current maturities, was $2,250 in 2021. Deferred revenue represents payments Deck Medic has received for goods or services that have not yet been fully earned. The current maturities represent the portion of deferred revenue that Deck Medic expects to recognize as revenue within the next year.
For a prospective Deck Medic franchisee, understanding deferred revenue can provide insight into the company's financial stability and how it manages its obligations. A consistent level of deferred revenue may indicate a steady stream of future income, while significant fluctuations could signal changes in sales or service delivery patterns.
It is important to note that this figure represents the current portion, meaning it is the amount expected to be recognized within the coming year. The total deferred revenue may include amounts extending beyond that period. Reviewing the complete financial statements and notes is essential for a comprehensive understanding of Deck Medic's financial position.