What was the deferred revenue reported for Gokhale Method in 2022?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Deferred revenue is primarily from initial franchise fees and renewal fees received from franchises for new franchise opening or new franchise terms, which are recognized over the franchise term.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
I am unable to provide the exact deferred revenue reported for Gokhale Method in 2022, as the provided excerpts from the 2024 Franchise Disclosure Document do not contain a specific figure for deferred revenue. However, the FDD does discuss how Gokhale Method accounts for deferred revenue.
Specifically, the FDD states that deferred revenue primarily comes from initial franchise fees and renewal fees. These fees are received from franchisees for new franchise openings or new franchise terms. Gokhale Method recognizes this revenue over the franchise term, which is a standard accounting practice for franchise fees.
A prospective franchisee should ask Gokhale Method for the specific deferred revenue amount listed on their balance sheet for the year 2022. This information is crucial for understanding the company's financial stability and how it manages its revenue recognition.