What was the total amount of Hyper Kidz's non-refundable deferred franchise sales classified as long-term liabilities in the provided financial data?

According to Hyper Kidz's 2024 Franchise Disclosure Document, the non-refundable deferred franchise sales classified as long-term liabilities totaled $157,095. This figure reflects the amount of franchise fees that Hyper Kidz has collected but not yet recognized as revenue, as they pertain to future franchise services or obligations extending beyond the current year. For comparison, the previous year's figure was $55,958.

This deferred revenue is considered a liability on Hyper Kidz's balance sheet because the company has an obligation to provide future services or fulfill certain conditions to earn the revenue. For a prospective franchisee, this indicates the financial health and stability of Hyper Kidz, showing how much revenue is secured for future periods. It also reflects the pace at which Hyper Kidz is selling franchises and collecting initial fees.

It is important to note that these deferred franchise sales are non-refundable, meaning that Hyper Kidz is not obligated to return these fees to franchisees under most circumstances. This is a common practice in franchising, as the initial fees often cover the costs of training, site selection assistance, and other initial support services provided to new franchisees. The current portion of non-refundable deferred franchise sales, representing the amount expected to be recognized as revenue within the next year, is listed separately as $20,700.