What was the total amount of Zoomin Groomin's deferred revenue - current in 2024?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| 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 | 712,478 | 385,004 | - |
| Deferred Revenue - Current | 1,006,725 | 520,782 | 39,540 |
| Total Current Liabilities | 1,831,712 | 1,074,372 | 213,100 |
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 - current was $1,006,725 in 2024. This represents revenue that Zoomin Groomin has received but not yet earned, meaning the services or products related to this revenue have not yet been provided. This is a notable increase from 2023, when deferred revenue - current was $520,782.
For a prospective franchisee, understanding deferred revenue is crucial because it reflects the company's financial obligations to deliver future services. A high deferred revenue balance suggests strong future revenue streams, but also a significant responsibility to fulfill those obligations. Franchisees should consider how changes in deferred revenue might impact Zoomin Groomin's ability to support its franchisees and invest in the franchise system.
In addition to deferred revenue - current, the FDD also lists "unearned revenue" as a separate liability. In 2024, Zoomin Groomin's unearned revenue was $100,000, compared to $40,000 in 2023. While both represent revenue received for services not yet rendered, the distinction between these two categories may relate to the timing or nature of the services to be provided. A potential franchisee should seek clarification from Zoomin Groomin on the specific differences between these two types of unearned revenue and how they are accounted for.
Overall, the substantial deferred revenue balance suggests that Zoomin Groomin is experiencing growth and has a backlog of future service obligations. Prospective franchisees should evaluate the company's ability to manage these obligations effectively and continue to provide high-quality support to its franchisees.