What was the value of Deck Medic's deferred revenue - net of 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, net of current maturities, was $18,000 in 2021. This figure represents the amount of revenue that Deck Medic has received but not yet earned as of the end of that fiscal year, after subtracting the portion expected to be recognized within the next 12 months.
Deferred revenue typically arises from franchise fees or other payments received upfront for services or products that will be delivered over time. The current maturities represent the portion of the deferred revenue that Deck Medic expects to recognize as revenue within the coming year. The net figure provides a snapshot of Deck Medic's financial obligations to provide future services or products for which it has already been compensated.
For a prospective Deck Medic franchisee, understanding deferred revenue can offer insights into the company's revenue recognition practices and financial stability. It's important to note that this deferred revenue is not necessarily indicative of future revenue or profitability, but rather reflects the company's existing obligations to its franchisees or customers. Reviewing these figures over several years can help identify trends and assess the company's financial health.