What was the total amount of Hyper Kidz's non-refundable deferred franchise sales considered long-term liabilities?

According to Hyper Kidz's 2024 Franchise Disclosure Document, the total amount of non-refundable deferred franchise sales considered as long-term liabilities was $157,095. This figure represents the deferred revenue that Hyper Kidz has received from franchisees but has not yet recognized as earned revenue on their income statement.

For a prospective Hyper Kidz franchisee, this indicates the financial obligations Hyper Kidz has to its franchisees over the long term. It reflects the amount of initial franchise fees that have not yet been recognized as revenue, likely because Hyper Kidz still needs to provide services or fulfill obligations to the franchisees who paid those fees.

This deferred revenue becomes recognized as earned revenue over time as Hyper Kidz fulfills its contractual obligations to franchisees, such as providing training, support, and access to the Hyper Kidz system. Monitoring the trend of this liability can provide insights into Hyper Kidz's growth and its ability to meet its obligations to its franchisees.