What is the difference between Deck Medic's revenue recognized at a point in time in 2021 and 2022?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
TH CUSTOMERS
Disaggregation of Revenue
Information regarding revenues disaggregated by the timing of when goods and services are transferred consist of the following for the years ended December 31:
| Revenue recognized at a point in time Total Re
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, the revenue recognized at a point in time was $173,856 in 2022 and $176,106 in 2021. This means that the revenue recognized at a point in time decreased by $2,250 from 2021 to 2022.
Revenue recognized at a point in time typically refers to revenue that is earned and recognized immediately upon delivery of goods or services. For a Deck Medic franchise, this could include revenue from services like deck staining or power washing where the service is completed and payment is received promptly.
A prospective franchisee should consider this information in the context of overall revenue trends and factors that may have influenced the change. Understanding the reasons behind fluctuations in revenue recognition can help in assessing the financial health and stability of the Deck Medic franchise system.
It's also important to note that revenue recognized over time increased from $2,250 in 2022 to $17,250 in 2021. This may reflect a change in the types of services offered or the payment terms agreed upon with customers. A potential franchisee should investigate the reasons for these changes to fully understand the revenue dynamics of the Deck Medic business.