What was the deferred revenue, net of current maturities, for Deck Medic as of December 31, 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, net of current maturities, was $18,000 as of December 31, 2021. This figure represents revenue that Deck Medic has received but not yet earned as of that date, less the portion of that revenue expected to be recognized within the next year.
Deferred revenue typically arises from initial franchise fees or other upfront payments that are earned over time as Deck Medic provides ongoing services or support to its franchisees. The current maturities represent the portion of the deferred revenue that Deck Medic expects to recognize as revenue within the next 12 months.
For a prospective Deck Medic franchisee, this information provides insight into the company's revenue recognition practices and its financial obligations related to deferred revenue. It indicates the amount of revenue that Deck Medic has already collected but has yet to recognize on its income statement, which can impact its reported profitability in future periods. Monitoring deferred revenue trends can help franchisees understand the sustainability of Deck Medic's revenue streams and its ability to meet its ongoing obligations.