When does Eos Worldwide recognize revenue from Boot Camp events?

According to Eos Worldwide's 2025 Franchise Disclosure Document, revenue from Boot Camp events is recognized when the franchisee attends the training. The fees for these events are collected upfront as part of the initial franchise agreement with new franchisees. However, Eos Worldwide does not immediately recognize this revenue. Instead, the fees are initially recorded as deferred revenue, a liability on the company's balance sheet, representing the obligation to provide the training service in the future.

This accounting treatment reflects the principle that revenue should be recognized when it is earned, not necessarily when cash is received. In the case of Eos Worldwide's Boot Camps, the revenue is considered earned when the training service has been provided to the franchisee. This approach ensures that the company's financial statements accurately reflect the timing of its revenue recognition.

For a prospective Eos Worldwide franchisee, this means that the fees paid for the Boot Camp are not immediately recognized as revenue by the company. This is a common practice in many franchise systems, where initial fees cover various services and training provided to new franchisees. The deferred revenue is then recognized as the services are delivered over time.