| Summary of Changes in Franchise Development and Brand Fee Contract Liabilities |
The following table reflects the change in franchise, including area development and multi-unit agreements and brand fee contract liabilities for the years ended December 31, 2025, 2024 and 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Franchise development fees |
|
|
Brand fees |
|
|
Total |
|
Balance at December 31, 2022 |
|
$ |
116,244 |
|
|
$ |
6,641 |
|
|
$ |
122,885 |
|
Revenue recognized that was included in deferred revenue at the beginning
of the year (1) |
|
|
(16,435 |
) |
|
|
(4,250 |
) |
|
|
(20,685 |
) |
Deferred revenue recorded as settlement in purchase accounting |
|
|
(1,278 |
) |
|
|
— |
|
|
|
(1,278 |
) |
Increase, excluding amounts recognized as revenue during the year |
|
|
28,631 |
|
|
|
149 |
|
|
|
28,780 |
|
Balance at December 31, 2023 |
|
|
127,162 |
|
|
|
2,540 |
|
|
|
129,702 |
|
Revenue recognized that was included in deferred revenue at the beginning
of the year (1) |
|
|
(24,121 |
) |
|
|
(1,713 |
) |
|
|
(25,834 |
) |
Deferred revenue recorded as settlement in purchase accounting |
|
|
(1,281 |
) |
|
|
— |
|
|
|
(1,281 |
) |
Increase, excluding amounts recognized as revenue during the year |
|
|
13,919 |
|
|
|
93 |
|
|
|
14,012 |
|
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) |
|
|
(31,574 |
) |
|
|
(506 |
) |
|
|
(32,080 |
) |
Decrease in deferred revenue due to divestiture |
|
|
(10,978 |
) |
|
|
— |
|
|
|
(10,978 |
) |
Increase, excluding amounts recognized as revenue during the period |
|
|
5,034 |
|
|
|
293 |
|
|
|
5,327 |
|
Balance at December 31, 2025 |
|
$ |
78,161 |
|
|
$ |
707 |
|
|
$ |
78,868 |
|
(1)
Includes revenue recognized as a result of terminations of $19,932, $12,285, and $6,147 for the years ended December 31, 2025, 2024 and 2023, respectively.
|
| 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, 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 development fees |
|
|
Brand fees |
|
|
Total |
|
2026 |
|
$ |
8,814 |
|
|
$ |
243 |
|
|
$ |
9,057 |
|
2027 |
|
|
8,813 |
|
|
|
464 |
|
|
|
9,277 |
|
2028 |
|
|
8,872 |
|
|
|
— |
|
|
|
8,872 |
|
2029 |
|
|
8,509 |
|
|
|
— |
|
|
|
8,509 |
|
2030 |
|
|
7,034 |
|
|
|
— |
|
|
|
7,034 |
|
Thereafter |
|
|
36,119 |
|
|
|
— |
|
|
|
36,119 |
|
|
|
$ |
78,161 |
|
|
$ |
707 |
|
|
$ |
78,868 |
|
|
| Summary of Components of Deferred Revenue |
The following table reflects the components of deferred revenue:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
Franchise development fees |
|
$ |
78,161 |
|
|
$ |
115,679 |
|
Brand fees |
|
|
707 |
|
|
|
920 |
|
Equipment and other |
|
|
10,023 |
|
|
|
15,248 |
|
Total deferred revenue |
|
|
88,891 |
|
|
|
131,847 |
|
Non-current portion of deferred revenue |
|
|
69,567 |
|
|
|
105,935 |
|
Current portion of deferred revenue |
|
$ |
19,324 |
|
|
$ |
25,912 |
|
|