What was the deferred revenue for Fast Fix Jewelry And Watch Repairs in 2023?
Fast_Fix_Jewelry_And_Watch_Repairs Franchise · 2025 FDDAnswer from 2025 FDD Document
ollections results in billed accounts receivable and franchise notes, and deferred revenue (contract liabilities) on the consolidated balance sheets are as follows as of December 31:
| 2023 | 2022 | 2021 | ||
|---|---|---|---|---|
| Royalty receivables | $ | 424,640 | $ 426,561 | $ 404,850 |
| Franchise notes receivables | 43,982 | 25,221 | 92,773 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 37)
What This Means (2025 FDD)
According to Fast Fix Jewelry And Watch Repairs's 2025 Franchise Disclosure Document, the deferred revenue, also referred to as contract liabilities, was $739,265 in 2023. This deferred revenue represents payments Fast Fix Jewelry And Watch Repairs has received for goods or services that have not yet been fully provided or earned. This is a common accounting practice, especially in franchise systems where initial franchise fees or ongoing royalties may be collected before the services are fully rendered.
For a prospective Fast Fix Jewelry And Watch Repairs franchisee, understanding deferred revenue is crucial because it reflects the company's financial obligations to its customers or franchisees. A higher deferred revenue balance could indicate strong future revenue streams as these obligations are fulfilled. Conversely, it also represents a liability that Fast Fix Jewelry And Watch Repairs must satisfy by providing the related services or products.
Reviewing the trend of deferred revenue over the years (2021-2023) can provide insights into the stability and growth of Fast Fix Jewelry And Watch Repairs's business. In this case, deferred revenue decreased from $777,458 in 2022 to $739,265 in 2023. Monitoring these figures helps potential franchisees assess the financial health and operational efficiency of the franchise system.