What was the deferred revenue for Exit in 2022?
Exit Franchise · 2025 FDDAnswer from 2025 FDD Document
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Note 6 Revenue from Contracts with Customers
Disaggregation of Revenues:
The Company disaggregates revenue by type as these categories best represent how the nature, timing and uncertainty of the Company's revenue and cash flows are affected. Disaggregated revenue by type is as follows for the years ended December 31:
| | 2024 | 2023 | 2022 | |--------
Source: Item 23 — RECEIPT (FDD pages 42–235)
What This Means (2025 FDD)
According to Exit's 2025 Franchise Disclosure Document, the deferred revenue for 2022 was $8,378,057. This figure represents revenues that Exit has received but not yet recognized as earned, typically related to franchise agreements. The long-term portion of this deferred revenue, specifically $4,854,640, is not expected to be recognized within the next year.
The remaining deferred revenue after deducting the long-term portion was $3,523,417 in 2022. This represents the short-term deferred revenue, which Exit anticipates recognizing as revenue in the near future as it fulfills its obligations under the franchise agreements.
Understanding deferred revenue is crucial for prospective franchisees as it provides insight into the financial health and stability of Exit. A substantial deferred revenue balance suggests that Exit has a strong pipeline of future earnings from its franchise network. Monitoring these figures over time can reveal trends in Exit's financial performance and its ability to generate and recognize revenue from its franchise operations.