What was the deferred revenue amount for Fast Fix Jewelry And Watch Repairs in 2022?
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 for the company in 2022 was $777,458. Deferred revenue represents payments Fast Fix Jewelry And Watch Repairs has received for goods or services that have not yet been fully earned. This is a liability on the company's balance sheet until the services are rendered or goods are delivered.
For a prospective franchisee, deferred revenue can be an indicator of future service obligations that Fast Fix Jewelry And Watch Repairs must fulfill. It reflects advanced payments, possibly for franchise fees or other services, that the company is obligated to provide in the future. A high deferred revenue balance could suggest strong future revenue recognition, but also significant upcoming service delivery requirements.
Franchisees should consider deferred revenue in their overall assessment of Fast Fix Jewelry And Watch Repairs's financial health. Understanding the trend of deferred revenue over several years, as presented in the table, can provide insights into the stability and growth of the company's obligations and future revenue streams. This information, combined with other financial metrics, helps potential franchisees make informed decisions about the franchise opportunity.