What is the deferred revenue expected to be recognized in 2027 for Precision Door Service?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes to Combined Financial Statements ($000's)
Revenue deferred as of December 31, 2022 and recognized in the year ended December 31, 2023 was $10,385. Revenue deferred as of December 31, 2021 and recognized in the year ended December 31, 2022 was $16,912.
As of December 31, 2023, the deferred revenue expected to be recognized for each of the next five years, and in the aggregate, is as follows:
| -- | -- | -- | --------------------------- | -- |
|---|
| 2024 2025 2026 2027 2028 Thereafter | $
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the information necessary to determine the deferred revenue expected to be recognized in 2027 by Precision Door Service is not available. While the document discusses deferred revenue in general, including how it arises from initial franchise fees and pending agreements, it does not provide a breakdown of deferred revenue recognition for specific future years beyond the next five years from the balance sheet date. The FDD includes tables showing deferred revenue balances and changes, but these tables only cover past periods (2022, 2023, and 2024) and do not project revenue recognition out to 2027.
Specifically, the FDD mentions that as of December 31, 2023 and December 31, 2024, the deferred revenue expected to be recognized for each of the next five years is presented. However, the actual figures for those years are not included in the provided excerpts. This missing information is crucial for a prospective franchisee to understand the financial health and revenue recognition practices of Precision Door Service.
To get a clearer picture, a potential franchisee should ask Precision Door Service for the complete deferred revenue recognition schedule. This schedule should detail the amounts expected to be recognized in each of the next five years (from the most recent balance sheet date) and in the aggregate. Understanding this schedule will help the franchisee assess the stability and predictability of the franchisor's revenue stream, which can indirectly affect the support and services they receive.
In summary, while the FDD provides context on deferred revenue, it lacks the specific figures needed to project revenue recognition for 2027. A prospective franchisee should request this information from Precision Door Service to make a fully informed investment decision.