What is the expected deferred revenue for open SBRs for Moes Southwest Grill?

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the deferred revenue for open SBRs (Satellite Brand Restaurants) is expected to be $3,346 in 2025, $2,580 in 2026, $2,436 in 2027, $2,276 in 2028, $2,083 in 2029, and $16,166 thereafter. The total deferred revenue for open SBRs is $28,887. This deferred revenue relates to performance obligations that are partially satisfied at the end of the year.

For a prospective Moe's Southwest Grill franchisee, this means that the franchisor has already collected fees for services or products that they have not yet fully delivered. In this case, it pertains to franchise and development fees for open SBRs, which are recognized as revenue over time as the franchise agreement progresses. The deferred revenue represents the portion of these fees that have not yet been recognized as revenue on the company's income statement.

This information is relevant for franchisees as it provides insight into the financial health and revenue recognition practices of Moe's Southwest Grill. Understanding the deferred revenue schedule can help franchisees assess the stability and future revenue streams of the franchisor. It's important to note that while this deferred revenue represents future income for the franchisor, it also signifies ongoing obligations to provide support and services to its franchisees.