What was the amount of unearned franchise and license fees for Focus Cfo as of December 31, 2023?

According to Focus Cfo's 2025 Franchise Disclosure Document, as of December 31, 2023, the company had $136,800 in unearned franchise and license fees. These unearned fees represent payments Focus Cfo has received for franchise and license agreements, but for which the company has not yet provided the services that would allow them to recognize the revenue.

Focus Cfo recognizes revenue in two stages: when the initial training program is provided and over the ten-year term of the franchise or license agreement for ongoing support. The initial training fee is recognized once the training is provided, while the initial franchise/license fee is recognized as revenue over the ten-year agreement term. This accounting practice is common in franchising, as it aligns revenue recognition with the delivery of services and support over the life of the agreement.

The unearned revenue is divided into current and long-term portions, which are included in other current liabilities and other long-term liabilities, respectively. This classification reflects the timing of when Focus Cfo expects to recognize the revenue, with the current portion representing revenue expected to be recognized within the next year and the long-term portion representing revenue expected to be recognized in future years.