For Moes Southwest Grill, what is the expected deferred revenue to be recognized 'Thereafter' beyond 2029?

According to the 2025 FDD, Moes Southwest Grill anticipates recognizing $16,166 in deferred revenue 'Thereafter' beyond 2029 related to performance obligations that are partially satisfied at the end of the year. This deferred revenue is associated with open Small Business Restaurants (SBRs). Additionally, $28,887 is listed as deferred revenue for open SBRs.

This deferred revenue recognition schedule provides insight into how Moes Southwest Grill accounts for franchise and development fees. These fees are initially recorded as deferred revenue when received and are recognized as revenue over the term of the franchise agreement, typically when the SBR is opened. The 'Thereafter' category likely represents the cumulative amount of revenue expected to be recognized from franchise agreements extending beyond the specified annual periods.

For a prospective Moes Southwest Grill franchisee, understanding the deferred revenue schedule can help in assessing the financial stability and revenue recognition practices of the franchisor. It's important to note that this schedule only accounts for revenue from performance obligations that are partially satisfied at the end of the year for open SBRs. Deferred revenue associated with unopened SBRs is accounted for separately. Franchisees should inquire about the details of revenue recognition and the factors that could influence the timing and amount of revenue recognized.