What was the deferred revenue for Potbelly Sandwich Works on December 31, 2023?
Potbelly_Sandwich_Works Franchise · 2025 FDDAnswer from 2025 FDD Document
| December 31, 2023 | ||
|---|---|---|
| Accrued labor and related expenses | $ 8,233 | $ 12,778 |
| Deferred revenue | 6,492 | 4,057 |
| Gift card liability | 3,954 | 3,972 |
| Accrued marketing | 1,332 | 2,904 |
| Accrued occupancy and utilities | 2,470 | 2,410 |
| Accrued sales and use tax | 1,325 | 2,135 |
| Accrued liability insurance | 2,076 | 2,039 |
| Other accrued expenses | $ 6,990 | $ 5,082 |
| Total | $ 32,872 | $ 35,377 |
Source: Item 23 — RECEIPTS (FDD pages 79–355)
What This Means (2025 FDD)
According to Potbelly Sandwich Works's 2025 Franchise Disclosure Document, the deferred revenue as of December 31, 2023, was $4,057. This figure represents revenues that Potbelly Sandwich Works has received but not yet earned as of that date. Deferred revenue is a liability on the company's balance sheet because the revenue has not been recognized.
For a potential franchisee, understanding deferred revenue can provide insight into the financial obligations and future revenue recognition of Potbelly Sandwich Works. It reflects advanced payments or commitments that the company has received for future goods or services. This could include items like gift card sales or other prepayments for catering services.
Reviewing the trend of deferred revenue over time, in conjunction with other financial metrics, can help a franchisee assess the stability and growth prospects of Potbelly Sandwich Works. A significant increase in deferred revenue might indicate strong future sales, while a decrease could signal potential challenges in maintaining sales volume or customer loyalty. Franchisees should consider this information as part of their broader due diligence when evaluating the franchise opportunity.