What is the amount of deferred revenue, net of current maturities, for Deck Medic?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
he franchise contract liability balances during the years ended December 31, 2023 and 2022 respectively. Franchise contract liability is included in deferred revenue on the accompanying balance sheets.
| Beginning balance | $ | 18,000 | $ | 20,250 | |
|---|---|---|---|---|---|
| Additional deferred revenue | 4 | ||||
| Revenue recognized – additional deferred revenue |
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, net of current maturities, was $13,500 in 2023 and $15,750 in 2022. This figure represents revenue that Deck Medic has received but not yet earned, with the current maturities (the portion expected to be recognized within the next year) already subtracted. Deferred revenue typically arises from franchise fees or other payments received upfront for services or products to be delivered over time.
For a prospective Deck Medic franchisee, this information provides insight into the company's financial health and revenue recognition practices. The deferred revenue balance indicates the extent of future obligations Deck Medic has to provide services or products for which it has already been paid. A consistent or growing deferred revenue balance can suggest stable or increasing sales of franchises.
The difference between deferred revenue and deferred revenue net of current maturities shows how much revenue Deck Medic expects to recognize in the coming year. Reviewing these figures over multiple years can reveal trends in Deck Medic's revenue recognition and overall financial performance. This information is usually found in the financial statements and related notes within the FDD.
It is important for potential franchisees to understand how deferred revenue impacts a franchisor's financial statements, as it reflects the timing of revenue recognition and can affect profitability metrics. Consulting with a financial advisor to analyze these figures in conjunction with other financial data in the FDD is advisable to gain a comprehensive understanding of Deck Medic's financial position.