What was the non-current deferred revenue for Face Foundrie in 2022?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
r 31, 2023, and 2022 were $30,000 and $34,000, respectively and for all years reported are classified as current. There were no deferred contract costs as of December 31, 2024.
The Company has estimated the following current and non-current portions of deferred revenue as of December 31, 2024,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 73)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the non-current deferred revenue for 2022 was $1,637,657. Deferred revenue represents payments Face Foundrie has received for services or products that have not yet been delivered or earned. This liability reflects Face Foundrie's obligation to provide future services or products for which they have already been paid.
For a prospective Face Foundrie franchisee, understanding deferred revenue is crucial because it reflects the financial obligations the franchisor has to its customers or franchisees. A high deferred revenue balance could indicate strong future revenue streams, but also signifies a substantial commitment to fulfill future obligations.
In Face Foundrie's case, the deferred revenue likely relates to franchise fees or other services paid in advance by franchisees. Monitoring the trend of deferred revenue over the years (2022-2024) can provide insights into the company's growth and its ability to manage its financial obligations effectively. Franchisees should consider this information when assessing the financial stability and future prospects of Face Foundrie.