What was the total amount of Zoomin Groomin's deferred revenue in 2023?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
r, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Zoomin Groomin USA LLC's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters the auditor identified during the audit.
DASH Business Solutions, LLC
DASH Business Solutions, LLC Royal Palm Beach, FL April 4, 2025
Balance Sheets December 31
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| ASSETS | |||
| Current Assets | |||
| Cash and Cash Equivalents | $ 71,234 | $ 111,382 | $ 4,894 |
| Inventory | - | 7,308 | 84,180 |
| Accounts Receivable | 386,516 | 212,876 | 161,766 |
| Prepaid Expenses | 1,530 | 1,538 | 28 |
| Income Tax Asset | 712,478 | 385,004 | - |
| Due From Affiliates | 4,819,061 | 2,429,123 | 176,000 |
| Total Current Assets | 5,990,819 | 3,147,231 | 426,868 |
| Other Assets | |||
| Intangible Assets, Net | 66,000 | 72,000 | 78,000 |
| Notes Receivable | 112,937 | 170,063 | 255,386 |
| Total Other Assets | 178,937 | 242,063 | 333,386 |
| TOTAL ASSETS | $ 6,169,756 | $ 3,389,294 | $ 760,254 |
| LIABILITIES & EQUITY | |||
| Current Liabilities | |||
| Accounts Payable | $ 12,509 | $ 83,586 | $ 2,056 |
| Due To Affiliates | - | 45,000 | 171,504 |
| Unearned Revenue | 100,000 | 40,000 | - |
| Deferred Tax Asset | 71 |
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the company's total deferred revenue in 2023 was $4,125,904. This figure represents revenue that Zoomin Groomin has received but not yet earned as of the end of that fiscal year. In addition to this amount, the company also had deferred revenue classified as current, which totaled $520,782.
Deferred revenue typically arises from franchise fees or other payments received upfront for services or products that will be delivered over time. This liability on Zoomin Groomin's balance sheet indicates an obligation to provide future services or products to franchisees or other customers. The current portion represents the amount expected to be recognized as revenue within the next 12 months, while the long-term portion extends beyond that period.
For a prospective Zoomin Groomin franchisee, understanding the franchisor's deferred revenue is important because it provides insight into the company's financial stability and future obligations. A high deferred revenue balance can indicate strong future revenue streams, but it also signifies a responsibility to fulfill those obligations. Changes in deferred revenue from year to year can reflect the company's sales performance and its ability to attract new franchisees or generate advance payments.
It is important to note that deferred revenue is a common accounting practice in the franchise industry, as initial franchise fees are often recognized over the term of the franchise agreement rather than entirely upfront. Reviewing the notes to the financial statements can provide further details on Zoomin Groomin's specific revenue recognition policies and the terms associated with its deferred revenue.