What was the reported deferred revenue for Floors To Go as of January 1, 2023?
Floors_To_Go Franchise · 2025 FDDAnswer from 2025 FDD Document
pation in an annual convention, which is sponsored by the Company. These amounts will be recognized as revenue when the convention is held and the related expenses incurred. The Company also records deferred revenue for amounts received from franchisees for member advertising fees. Revenue for these services will be recognized over the terms
Source: Item 23 — RECEIPTS (FDD pages 47–204)
What This Means (2025 FDD)
According to Floors To Go's 2025 Franchise Disclosure Document, the deferred revenue as of January 1, 2023, was $51,761. Deferred revenue represents payments Floors To Go has received for goods or services that have not yet been fully provided or earned. This is a liability on the balance sheet because Floors To Go has an obligation to provide those goods or services in the future.
For a prospective Floors To Go franchisee, deferred revenue can be an indicator of future service obligations. It reflects the amount of money Floors To Go has already collected for services like annual conventions or member advertising fees that will be provided over the term of the franchise agreement.
Understanding deferred revenue helps a franchisee assess the financial health and obligations of Floors To Go. It shows how much revenue is tied to future performance and can provide insight into the sustainability of the franchisor's revenue streams. Reviewing these figures over time can reveal trends in how Floors To Go manages its financial obligations and service delivery.