What was the total amount of long-term deferred revenue for Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
gregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
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Atlanta, Georgia March 7, 2025
Consolidated balance sheets
(In thousands)
| December 29, 2024 | December 31, 2023 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 11,594 | $ 22,662 |
| Restricted cash and cash equivalents - securitization | 32,747 | 29,582 |
| Accounts receivable, net of allowance for credit losses of | ||
| $1,748 and $1,143 in 2024 and 2023, respectively | 44,272 | 37,049 |
| Inventories | 1,128 | 978 |
| Prepaid expenses and other current assets | 12,118 | 9,263 |
| Advertising funds assets | 9,927 | 7,643 |
| Intercompany receivables from Parent | 3,277 | 3,277 |
| Total current assets | 115,063 | 110,454 |
| Property, equi |
Source: Item 23 — Receipts (FDD pages 92–334)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the long-term deferred revenue is detailed in Item 23, Receipts. The provided excerpts show long-term deferred revenue for two fiscal years. Specifically, for the fiscal year ended December 29, 2024, the long-term deferred revenue was $58,571. For the fiscal year ended December 31, 2023, the long-term deferred revenue was $55,362.
Deferred revenue generally represents payments Moes Southwest Grill has received for goods or services that have not yet been provided. In the case of a franchise, this often relates to franchise fees or development fees received for stores that are not yet open. The franchisor recognizes this revenue over time as the franchisee operates.
For a prospective franchisee, long-term deferred revenue can be an indicator of future revenue streams for Moes Southwest Grill. It reflects the amount of revenue already collected for future franchise operations. Monitoring these figures can provide insight into the financial stability and growth trajectory of the franchise system. A significant increase in deferred revenue could suggest strong franchise sales and expansion, while a decrease might indicate slower growth or challenges in attracting new franchisees.
It's important to note that deferred revenue is a liability on the balance sheet until it is recognized as actual revenue. The figures provided give a snapshot of Moes Southwest Grill's financial position at the end of 2023 and 2024, and understanding these values can help potential franchisees assess the overall financial health of the franchise system.