What was the current deferred revenue for My Salon Suite as of December 31, 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
date of the franchise center.
Balance sheet balances related to ASC 606 consists of the following on December 31:
| 2023 | 2022 | |
|---|---|---|
| Deferred Revenue: Current deferred revenue Non-current deferred revenue | $ 2,94 |
Source: Item 6 — Other Intangibles and Goodwill (FDD pages 274–314)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the current deferred revenue as of December 31, 2023, was $2,949,793. Deferred revenue represents payments My Salon Suite has received for goods or services that have not yet been fully provided or earned. This is a liability on the balance sheet because My Salon Suite has an obligation to provide those future goods or services.
For a prospective My Salon Suite franchisee, understanding deferred revenue is crucial. It indicates the financial obligations My Salon Suite has to its customers or franchisees at a given point in time. A higher deferred revenue balance could suggest strong future revenue streams, but also greater immediate obligations.
It is also important to note the non-current deferred revenue, which represents the portion of deferred revenue that will be recognized beyond the next 12 months. As of December 31, 2023, My Salon Suite's non-current deferred revenue was $9,030,378. The total deferred revenue, which is the sum of the current and non-current portions, was $11,980,171 as of December 31, 2023.