Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities and Costs from Contracts with Customers (Tables)

v3.22.2.2
Contract Liabilities and Costs from Contracts with Customers (Tables)
 9 Months Ended
Sep. 30, 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 nine months ended September 30, 2022.

 

 

Franchise
development
fees

 

 

Brand fees

 

 

Total

 

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

 

 

(16,073

)

 

 

(2,456

)

 

 

(18,529

)

Deferred revenue recorded as settlement in
   purchase accounting

 

 

(240

)

 

 

—

 

 

 

(240

)

Increase, excluding amounts recognized as revenue
   during the year

 

 

28,398

 

 

 

4,601

 

 

 

32,999

 

Balance at September 30, 2022

 

$

112,738

 

 

$

8,125

 

 

$

120,863

 
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, 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

 

Remainder of 2022

 

$

1,927

 

 

$

1,454

 

 

$

3,381

 

2023

 

 

10,563

 

 

 

4,280

 

 

 

14,843

 

2024

 

 

12,360

 

 

 

1,564

 

 

 

13,924

 

2025

 

 

13,192

 

 

 

414

 

 

 

13,606

 

2026

 

 

13,304

 

 

 

413

 

 

 

13,717

 

Thereafter

 

 

61,392

 

 

 

—

 

 

 

61,392

 

 

 

$

112,738

 

 

$

8,125

 

 

$

120,863

 
Summary of Components of Deferred Revenue

The following table reflects the components of deferred revenue:

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Franchise and area development fees

 

$

112,738

 

 

$

100,653

 

Brand fees

 

 

8,125

 

 

 

5,980

 

Equipment and other

 

 

16,367

 

 

 

11,805

 

Total deferred revenue

 

 

137,230

 

 

 

118,438

 

Non-current portion of deferred revenue

 

 

108,191

 

 

 

95,691

 

Current portion of deferred revenue

 

$

29,039

 

 

$

22,747