What was the amount of franchise sales revenue recognized by Precision Door Service in 2022?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| As of December 31, | 2023 | 2022 |
|---|---|---|
| Liabilities and Stockholder's Equity | ||
| Current liabilities | ||
| Trade accounts payable | $ 15,962 $ | 22,199 |
| Accrued liabilities | 56,589 | 62,940 |
| Deferred revenue | 17,760 | 15,688 |
| current | ||
| Current portion of long-term debt | 10,488 | 10,627 |
| Current portion of operating lease liabilities | 6,925 | 6,681 |
| Current portion of finance | 4,426 | 2,659 |
| lease obligations | ||
| Total current liabilities | 112,150 | 120,794 |
| Long-term debt - | 1,451,356 | 1,175,523 |
| less current portion | ||
| Operating | 21,302 | 22,141 |
| lease obligations – | ||
| less current portion | ||
| Finance | 10,187 | 4,053 |
| lease obligations – | ||
| less current portion | ||
| Deferred tax liabilities | 220,780 | 261,098 |
| Deferred revenue | 73,850 | 64,676 |
| less current portion | ||
| Other non-current liabilities | 1,696 | 1,971 |
| Commitments and Contingencies (Notes 8 | ||
| and 11) | ||
| Stockholder's equity | - | - |
| Common stock-par value $0.01 per share; 100 shares | ||
| authorized, issued and outstanding | ||
| Additional paid-in capital | 2,100,435 | 2,420,959 |
| Accumulated deficit | (489,405) | (50,587) |
| Accumulated other comprehensive loss | (42,956) | (51,483) |
| Total stockholder's equity | 1,568,074 | 2,318,889 |
| Total liabilities and stockholder's equity | $ 3,459,395 $ | 3,969 |
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the franchise sales revenue recognized in 2022 was $20,655. This revenue stems from the sale of new franchise territories and additional territories to existing franchisees.
Franchise sales revenue is a crucial indicator of Precision Door Service's expansion and the demand for its franchise opportunities. Recognizing this revenue means Precision Door Service has fulfilled its initial obligations related to those franchise sales, such as granting the rights to operate under their brand.
For a prospective franchisee, this figure provides insight into the company's growth trajectory and the potential for future expansion. It's important to note that this revenue is distinct from ongoing royalties or service fees collected from existing franchisees, which are recognized separately as franchise service fees.