What was the revenue from franchise and license fees for Focus Cfo in 2024?

According to Focus Cfo's 2025 Franchise Disclosure Document, as of December 31, 2024, the company had unearned franchise and license fees totaling $377,055. In comparison, the unearned franchise and license fees as of December 31, 2023, were $136,800. The current portion of the unearned revenue is included in other current liabilities, while the long-term portion is included in other long-term liabilities.

It is important to note that these figures represent unearned revenue. Focus Cfo recognizes revenue from franchise and license fees in two stages: upon providing the initial training program and over the ten-year term of the agreement for ongoing support. The training fee is recognized once the training is provided, while the initial franchise/license fee is recognized as revenue over the duration of the agreement.

For a prospective franchisee, this means that Focus Cfo doesn't immediately recognize the entire franchise fee as revenue. Instead, a portion is recognized upfront after the initial training, and the remaining amount is recognized gradually over the ten-year franchise term. The unearned revenue balance reflects the amount of franchise and license fees that Focus Cfo has received but not yet recognized as revenue because the services related to those fees have not been fully provided. Therefore, the actual revenue from franchise and license fees recognized in 2024 would be different from the unearned revenue balance as of December 31, 2024.