What was the amount of deferred franchise fee revenue for Learningrx in 2023?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Springfield, Missouri
January 3, 2024
LearningRx Franchise Corporation Balance Sheets As of September 30, 2023 and 2022
Assets
| 2023 | 2022 | |
|---|---|---|
| Current Assets | ||
| Cash and cash equivalents Accounts receivable, net of allowance of | $ 551,641 | $ 534,941 |
| $23,629 in 2023 and $46,075 in 2022 | 243,535 | 246,972 |
| Prepaid expenses | 1,635 | |
| Deferred income tax asset | 19,663 | 24,158 |
| Total Current Assets | 814,839 | 807,706 |
| Property and Equipment | ||
| Equipment and software, net | 2,432 | 3,289 |
| Net Property and Equipment | 2,432 | 3,289 |
| Other Noncurrent Assets | ||
| Deferred income taxes | 155,827 | 162,723 |
| Right-of-use assets | 220,053 | 289,858 |
| Net Other Noncurrent Assets | 375,880 | 452,581 |
| Total Assets | $ 1,193,151 | $ 1,263,576 |
| Liabilities And Stockhol | lders' Equity | |
| Current Liabilities | ||
| Accounts payable | 5,871 | • |
| Liability for marketing and development funds | 144,019 | 129,692 |
| Deferred franchise fee revenue | 28,000 | |
| Current porti |
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the balance sheet as of September 30, 2023, does not explicitly list a value for deferred franchise fee revenue. However, the balance sheet as of September 30, 2022, shows deferred franchise fee revenue of $28,000.
Deferred franchise fee revenue typically represents initial franchise fees that Learningrx has collected but not yet recognized as earned revenue. This is a common accounting practice in franchising, as the initial franchise fee often covers services and support that Learningrx provides to the franchisee over time. The revenue is recognized as these services are rendered.
The absence of a specific deferred franchise fee revenue figure for 2023 in the provided balance sheet excerpt suggests that Learningrx may have recognized all previously deferred revenue by that date, or that the amount was immaterial and included in another line item. A prospective Learningrx franchisee should review the full financial statements and notes within the FDD for a complete understanding of Learningrx's revenue recognition policies and financial performance.