What was the total amount of Face Foundrie's deferred revenue, current, in 2022?

According to Face Foundrie's 2025 Franchise Disclosure Document, the company's deferred revenue, current, totaled $131,147 in 2022. Deferred revenue represents payments Face Foundrie has received for goods or services that have not yet been fully earned. In the case of Face Foundrie, this primarily relates to franchise fees that are recognized over time as the company fulfills its obligations to franchisees. The current portion of deferred revenue represents the amount expected to be recognized within the next year.

For a prospective Face Foundrie franchisee, understanding deferred revenue is crucial because it reflects the company's financial stability and its ability to meet future obligations. A significant increase in deferred revenue could indicate strong sales and future revenue streams. Conversely, a decrease might signal potential challenges in attracting new franchisees or retaining existing ones. It is important to note that deferred revenue is a common accounting practice in the franchise industry, as initial franchise fees often cover services provided over the term of the franchise agreement.

In addition to deferred revenue, Face Foundrie also reported deferred contract costs. These costs, such as broker commissions, are deferred and recognized over the same period as the related revenue. As of December 31, 2022, Face Foundrie's deferred contract costs were $34,000 and classified as current. These deferred costs decreased to $30,000 in 2023 and were $0 in 2024. Monitoring both deferred revenue and deferred costs can provide a more complete picture of Face Foundrie's financial health and its revenue recognition practices.