Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities and Costs from Contracts with Customers (Tables)

v3.23.2
Contract Liabilities and Costs from Contracts with Customers (Tables)
 6 Months Ended
Jun. 30, 2023
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 six months ended June 30, 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

 

 

(8,169

)

 

 

(2,817

)

 

 

(10,986

)

Deferred revenue recorded as settlement in
   purchase accounting

 

 

(978

)

 

 

—

 

 

 

(978

)

Increase, excluding amounts recognized as revenue
   during the period

 

 

14,328

 

 

 

1,350

 

 

 

15,678

 

Balance at June 30, 2023

 

$

121,425

 

 

$

5,174

 

 

$

126,599

 
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 June 30, 2023. 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 2023

 

$

3,979

 

 

$

2,547

 

 

$

6,526

 

2024

 

 

8,388

 

 

 

1,781

 

 

 

10,169

 

2025

 

 

9,029

 

 

 

432

 

 

 

9,461

 

2026

 

 

10,161

 

 

 

414

 

 

 

10,575

 

2027

 

 

10,455

 

 

 

—

 

 

 

10,455

 

Thereafter

 

 

79,413

 

 

 

—

 

 

 

79,413

 

 

$

121,425

 

 

$

5,174

 

 

$

126,599

 
Summary of Components of Deferred Revenue

The following table reflects the components of deferred revenue:

 

 

 

June 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

Franchise and area development fees

 

$

121,425

 

 

$

116,244

 

Brand fees

 

 

5,174

 

 

 

6,641

 

Equipment and other

 

 

20,772

 

 

 

18,576

 

Total deferred revenue

 

 

147,371

 

 

 

141,461

 

Non-current portion of deferred revenue

 

 

112,816

 

 

 

109,465

 

Current portion of deferred revenue

 

$

34,555

 

 

$

31,996