What was the total deferred expense for My Salon Suite as of December 31, 2023?
My_Salon_Suite Franchise · 2025 FDDAnswer from 2025 FDD Document
ts sales force, and in certain instances, third party brokers to obtain leads for new franchise arrangements. The costs for internal sales commissions and third-party broker fees are amortized over the agreement term of each respective contract starting from the opening date of the franchise center.
Balance sheet balances related to ASC 606 consists of the following on December 31:
| 2024 | 2023 | |
|---|---|---|
| Deferred Revenue | $ 3,717,216 | $ 2,949,793 |
| Current d |
Source: Item 17 — (r) of the FDD and Section 13 of the Franchise Agreement disclose the existence of certain covenants restricting competition to which Franchisee must agree. The Commissioner has held that covenants restricting competition contrary to Section 9-08-06 of the North Dakota Century Code, without further disclosing that such covenants may be subject to this statue, are unfair, unjust, or inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. The FDD and the Franchise Agreement are amended accordingly to the extent required by law. (FDD pages 230–274)
What This Means (2025 FDD)
According to My Salon Suite's 2025 Franchise Disclosure Document, the total deferred expense as of December 31, 2023, was $3,569,709. This figure is broken down into two categories: current deferred expenses, which are included in prepaid expenses, and non-current deferred expenses, which are included in other assets.
The current deferred expense for My Salon Suite as of December 31, 2023, was $648,795. These are short-term expenses that My Salon Suite has already paid for but will not be fully recognized until a later date, typically within one year. They are categorized as prepaid expenses on the balance sheet.
The non-current deferred expense for My Salon Suite as of December 31, 2023, was $2,920,914. These are longer-term expenses that My Salon Suite has paid for but will recognize over a period exceeding one year. These expenses are classified under other assets on the balance sheet. Understanding the breakdown of deferred expenses can help a franchisee assess the company's financial health and how it manages its assets and liabilities over different time horizons.