Quarterly report [Sections 13 or 15(d)]

Contract Liabilities and Costs from Contracts with Customers (Tables)

v3.25.1
Contract Liabilities and Costs from Contracts with Customers (Tables)
3 Months Ended
Mar. 31, 2025
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 and area development and brand fee contract liabilities for the three months ended March 31, 2025.

 

 

Franchise and area development fees

 

 

Brand fees

 

 

Total

 

Balance at December 31, 2024

 

 

115,679

 

 

 

920

 

 

 

116,599

 

Revenue recognized that was included in deferred revenue at the beginning
     of the year
(1)

 

 

(3,377

)

 

 

(183

)

 

 

(3,560

)

Increase, excluding amounts recognized as revenue during the period

 

 

262

 

 

 

288

 

 

 

550

 

Balance at March 31, 2025

 

$

112,564

 

 

$

1,025

 

 

$

113,589

 

(1)
Includes revenue recognized as a result of terminations of $815 for the three months ended March 31, 2025.
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 March 31, 2025. The expected future recognition period for deferred franchise and area 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

 

Franchise and area development fees

 

 

Brand fees

 

 

Total

 

Remainder of 2025

 

$

8,221

 

 

$

715

 

 

$

8,936

 

2026

 

 

11,074

 

 

 

310

 

 

 

11,384

 

2027

 

 

11,671

 

 

 

 

 

 

11,671

 

2028

 

 

12,271

 

 

 

 

 

 

12,271

 

2029

 

 

11,724

 

 

 

 

 

 

11,724

 

Thereafter

 

 

57,603

 

 

 

 

 

 

57,603

 

 

$

112,564

 

 

$

1,025

 

 

$

113,589

 

Summary of Components of Deferred Revenue

The following table reflects the components of deferred revenue:

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

Franchise and area development fees

 

$

112,564

 

 

$

115,679

 

Brand fees

 

 

1,025

 

 

 

920

 

Equipment and other

 

 

13,779

 

 

 

15,248

 

Total deferred revenue

 

 

127,368

 

 

 

131,847

 

Non-current portion of deferred revenue

 

 

102,318

 

 

 

105,935

 

Current portion of deferred revenue

 

$

25,050

 

 

$

25,912