Contract Liabilities and Costs from Contracts with Customers (Tables)
|
12 Months Ended |
Dec. 31, 2022 |
|---|
| 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 years ended December 31, 2022, 2021 and 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise
development
fees |
|
|
Brand fees |
|
|
Total |
|
Balance at January 1, 2020 |
|
$ |
72,359 |
|
|
$ |
— |
|
|
$ |
72,359 |
|
Revenue recognized that was included in deferred
revenue at the beginning of the year |
|
|
(7,921 |
) |
|
|
— |
|
|
|
(7,921 |
) |
Deferred revenue recorded as settlement in
purchase accounting |
|
|
(1,329 |
) |
|
|
— |
|
|
|
(1,329 |
) |
Increase, excluding amounts recognized as revenue
during the year |
|
|
13,262 |
|
|
|
5,385 |
|
|
|
18,647 |
|
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 |
|
|
(11,320 |
) |
|
|
(1,897 |
) |
|
|
(13,217 |
) |
Deferred revenue recorded as settlement in
purchase accounting |
|
|
(667 |
) |
|
|
— |
|
|
|
(667 |
) |
Increase, excluding amounts recognized as revenue
during the year |
|
|
36,269 |
|
|
|
2,492 |
|
|
|
38,761 |
|
Balance at December 31, 2021 |
|
|
100,653 |
|
|
|
5,980 |
|
|
|
106,633 |
|
Revenue recognized that was included in deferred
revenue at the beginning of the year |
|
|
(20,631 |
) |
|
|
(3,445 |
) |
|
|
(24,076 |
) |
Deferred revenue recorded as settlement in
purchase accounting |
|
|
(395 |
) |
|
|
— |
|
|
|
(395 |
) |
Increase, excluding amounts recognized as revenue
during the year |
|
|
36,617 |
|
|
|
4,106 |
|
|
|
40,723 |
|
Balance at December 31, 2022 |
|
$ |
116,244 |
|
|
$ |
6,641 |
|
|
$ |
122,885 |
|
|
| 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 December 31, 2022. 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 |
|
2023 |
|
$ |
9,178 |
|
|
$ |
4,250 |
|
|
$ |
13,428 |
|
2024 |
|
|
9,558 |
|
|
|
1,564 |
|
|
|
11,122 |
|
2025 |
|
|
10,693 |
|
|
|
414 |
|
|
|
11,107 |
|
2026 |
|
|
11,894 |
|
|
|
413 |
|
|
|
12,307 |
|
2027 |
|
|
11,803 |
|
|
|
— |
|
|
|
11,803 |
|
Thereafter |
|
|
63,118 |
|
|
|
— |
|
|
|
63,118 |
|
|
|
$ |
116,244 |
|
|
$ |
6,641 |
|
|
$ |
122,885 |
|
|
| Summary of Components of Deferred Revenue |
The following table reflects the components of deferred revenue:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
Franchise and area development fees |
|
$ |
116,244 |
|
|
$ |
100,653 |
|
Brand fees |
|
|
6,641 |
|
|
|
5,980 |
|
Equipment and other |
|
|
18,576 |
|
|
|
11,805 |
|
Total deferred revenue |
|
|
141,461 |
|
|
|
118,438 |
|
Non-current portion of deferred revenue |
|
|
109,465 |
|
|
|
95,691 |
|
Current portion of deferred revenue |
|
$ |
31,996 |
|
|
$ |
22,747 |
|
|