Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities and Costs from Contracts with Customers (Tables)

v3.21.2
Contract Liabilities and Costs from Contracts with Customers (Tables)
 6 Months Ended
Jun. 30, 2021
Revenue From Contract With Customer [Abstract]  
Summary of Changes in Franchise Development and Brand Fee Contract Liabilities The following table reflects the change in franchise development and brand fee contract liabilities for the six months ended June 30, 2021.

 

 

 

Franchise

development

fees

 

 

Brand fees

 

 

Total

 

Balance at December 31, 2020

 

$

76,371

 

 

$

5,385

 

 

$

81,756

 

Revenue recognized that was included in deferred

   revenue at the beginning of the year

 

 

(4,813

)

 

 

(948

)

 

 

(5,761

)

Deferred revenue recorded as settlement in

   purchase accounting

 

 

(459

)

 

 

—

 

 

 

(459

)

Increase, excluding amounts recognized as revenue

   during the year

 

 

13,771

 

 

 

1,307

 

 

 

15,078

 

Balance at June 30, 2021

 

$

84,870

 

 

$

5,744

 

 

$

90,614

 

 
Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligation

The following table illustrates estimated revenue expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of June 30, 2021. The expected future recognition period for deferred franchise development fees related to unopened studios is based on management’s best estimate of the beginning of the franchise license term for those studios. The Company elected to not disclose short term contracts, sales and usage-based royalties, marketing fees and any other variable consideration recognized on an “as invoiced” basis.

 

Contract liabilities to be recognized in revenue in

 

Franchise

development

fees

 

 

Brand fees

 

 

Total

 

Remainder of 2021

 

$

2,928

 

 

$

1,186

 

 

$

4,114

 

2022

 

 

7,255

 

 

 

2,372

 

 

 

9,627

 

2023

 

 

8,598

 

 

 

2,068

 

 

 

10,666

 

2024

 

 

9,184

 

 

 

118

 

 

 

9,302

 

2025

 

 

9,280

 

 

 

—

 

 

 

9,280

 

Thereafter

 

 

47,625

 

 

 

—

 

 

 

47,625

 

 

 

$

84,870

 

 

$

5,744

 

 

$

90,614

 

 
Summary of Components of Deferred Revenue

The following table reflects the components of deferred revenue:

 

 

 

June 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Franchise and area development fees

 

$

84,870

 

 

$

76,371

 

Brand fees

 

 

5,744

 

 

 

5,385

 

Equipment and other

 

 

10,113

 

 

 

6,852

 

Total deferred revenue

 

 

100,727

 

 

 

88,608

 

Non-current portion of deferred revenue

 

 

82,137

 

 

 

74,361

 

Current portion of deferred revenue

 

$

18,590

 

 

$

14,247