What was the total amount of Spray Net's contract liability, net of current, at the end of 2022?

According to Spray Net's 2025 Franchise Disclosure Document, the company's non-refundable franchise fees received but not yet earned as of December 31, 2022, were $3,355,822. These fees are recorded as deferred revenues, which represents the contract liability, net of amounts earned based on allowable direct services. This liability is recognized over the life of the franchise agreement.

This means that Spray Net held $3,355,822 in unearned revenue from franchise fees at the close of 2022. This deferred revenue represents Spray Net's obligation to provide services or fulfill the franchise agreement terms for which they have already received payment. For a potential franchisee, this indicates the scale of financial obligations Spray Net has to its existing franchisees.

The deferred revenue balance is a key indicator of Spray Net's financial health and its future revenue recognition potential. The change in deferred revenue from year to year can reflect the pace of new franchise sales and the rate at which Spray Net is fulfilling its obligations to franchisees. A prospective franchisee may want to compare these figures with previous years to understand the trend and sustainability of Spray Net's revenue model.

It is important to note that this figure represents only the non-refundable franchise fees. Other potential liabilities, such as those related to brand fund or other operational aspects, are accounted for separately. A prospective franchisee should review the complete financial statements and notes to fully understand Spray Net's financial obligations and liabilities.