What was the amount of franchise fees Mr. Sandless collected in 2021?

According to Mr. Sandless's 2025 Franchise Disclosure Document, the company records non-refundable franchise fees as deferred revenues, which are then recognized over the life of the franchise agreement. These fees are reported net of amounts earned based on allowable direct services. As of December 31, 2021, Mr. Sandless had received $263,080 in non-refundable franchise fees that had not yet been earned.

This accounting practice means that Mr. Sandless does not immediately recognize the full franchise fee as revenue when it's collected. Instead, the revenue recognition is spread out over the term of the franchise agreement. This is a common accounting method that provides a more accurate picture of the company's financial performance over time.

For a prospective franchisee, this deferred revenue approach indicates that Mr. Sandless's reported revenue in any given year may not fully reflect the total franchise fees collected during that year. It is important to consider this when evaluating the company's financial statements. The amount of deferred franchise fees can provide insight into the future revenue stream Mr. Sandless expects to recognize from existing franchise agreements.