Where is the long-term portion of the unearned revenue included on Focus Cfo's balance sheet?

According to Focus Cfo's 2025 Franchise Disclosure Document, the company recognizes revenue from franchise or license sales in two stages: the initial training program and ongoing support. The training fee is recognized once the training program is provided, while the initial franchise/license fee is recognized as revenue over the ten-year agreement term. This means that a portion of the initial fee is 'unearned' at any given time and is recognized as revenue gradually over the term of the agreement. As of December 31, 2024, Focus Cfo had unearned franchise and license fees of $377,055, and $136,800 as of December 31, 2023.

The current portion of unearned revenue, representing the amount expected to be earned within the next year, is classified as a current liability on Focus Cfo's balance sheet. The remaining portion, which will be earned over the longer term, is classified as a long-term liability.

Specifically, the 2025 FDD states that the long-term portion of the unearned revenue is included in other long term liabilities on Focus Cfo's balance sheet. This accounting treatment reflects the fact that Focus Cfo has an obligation to provide ongoing support and resources to its franchisees and licensees over the duration of their agreements, and the unearned revenue represents the company's deferred obligation to fulfill these services.