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)
 9 Months Ended
Sep. 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 nine months ended September 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

 

 

(7,444

)

 

 

(1,422

)

 

 

(8,866

)

Deferred revenue recorded as settlement in
   purchase accounting

 

 

(505

)

 

 

—

 

 

 

(505

)

Increase, excluding amounts recognized as revenue
   during the year

 

 

24,555

 

 

 

1,188

 

 

 

25,743

 

Balance at September 30, 2021

 

$

92,977

 

 

$

5,151

 

 

$

98,128

 
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 September 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

 

$

1,639

 

 

$

593

 

 

$

2,232

 

2022

 

 

8,193

 

 

 

2,372

 

 

 

10,565

 

2023

 

 

9,537

 

 

 

2,068

 

 

 

11,605

 

2024

 

 

10,123

 

 

 

118

 

 

 

10,241

 

2025

 

 

10,219

 

 

 

—

 

 

 

10,219

 

Thereafter

 

 

53,266

 

 

 

—

 

 

 

53,266

 

 

 

$

92,977

 

 

$

5,151

 

 

$

98,128

 

 

 
Summary of Components of Deferred Revenue

The following table reflects the components of deferred revenue:

 

 

 

 September 30,

 

 

 December 31,

 

 

 

 2021

 

 

 2020

 

Franchise and area development fees

 

$

92,977

 

 

$

76,371

 

Brand fees

 

 

5,151

 

 

 

5,385

 

Equipment and other

 

 

12,670

 

 

 

6,852

 

Total deferred revenue

 

 

110,798

 

 

 

88,608

 

Non-current portion of deferred revenue

 

 

89,231

 

 

 

74,361

 

Current portion of deferred revenue

 

$

21,567

 

 

$

14,247