What was the total amount of long-term liabilities for Deer Solution in 2022?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Metwally CPA PLLC
Metwally CPA PLLC Fort Worth, Texas January 30, 2023
Balance Sheet December 31, 2022
| 2022 | |
|---|---|
| ASSETS | |
| Current Assets | |
| Cash and cash equivalents | $ 45,017 |
| Deferred commission expense - current portion | 67,857 |
| Total Current Assets | 112,874 |
| Non Current Assets | |
| Deferred commission expense - net of current portion | 339,286 |
| Total Non Current Assets | 339,286 |
| Total Assets | $ 452,160 |
| LIABILITIES AND MEMBERS' EQUITY | |
| Current Liabilities | |
| Accrued liabilities | $ 35,000 |
| Deferred revenue - current portion | 50,143 |
| Total Current Liabilities | 85,143 |
| Long Term Liabilities | |
| Deferred revenue - net of current portion |
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, the total long-term liabilities for the company in 2022 were $250,714. This figure represents deferred revenue, specifically the portion of franchise fees collected that will be recognized as revenue over the life of the franchise agreements, net of the current portion.
For a prospective Deer Solution franchisee, this indicates the amount of revenue that Deer Solution has already received but has not yet recognized as earned income on their financial statements. This deferred revenue is associated with franchise agreements that extend beyond the next twelve months.
It is important to note that this liability reflects Deer Solution's obligation to provide services or fulfill the franchise agreement terms in the future, corresponding to the franchise fees already collected. Reviewing the trend of long-term liabilities over several years could provide insights into the company's growth and future revenue recognition.