Quarterly report pursuant to Section 13 or 15(d)

Contract Liabilities and Costs from Contracts with Customers (Tables)

v3.24.3
Contract Liabilities and Costs from Contracts with Customers (Tables)
 9 Months Ended
Sep. 30, 2024
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, 2024.

 

 

Franchise
development
fees

 

 

Brand fees

 

 

Total

 

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)

 

 

(18,923

)

 

 

(1,589

)

 

 

(20,512

)

Decrease in deferred revenue due to divestiture

 

 

(1,258

)

 

 

—

 

 

 

(1,258

)

Increase, excluding amounts recognized as revenue
   during the period

 

 

11,933

 

 

 

274

 

 

 

12,207

 

Balance at September 30, 2024

 

$

118,914

 

 

$

1,225

 

 

$

120,139

 
(1)
Revenue recognized during the period includes revenue recognized as a result of terminations.
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, 2024. 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

 

Franchise
development
fees

 

 

Brand fees

 

 

Total

 

Remainder of 2024

 

$

2,467

 

 

$

397

 

 

$

2,864

 

2025

 

 

10,590

 

 

 

414

 

 

 

11,004

 

2026

 

 

10,995

 

 

 

414

 

 

 

11,409

 

2027

 

 

11,903

 

 

 

—

 

 

 

11,903

 

2028

 

 

12,248

 

 

 

—

 

 

 

12,248

 

Thereafter

 

 

70,711

 

 

 

—

 

 

 

70,711

 

 

$

118,914

 

 

$

1,225

 

 

$

120,139

 
Summary of Components of Deferred Revenue

The following table reflects the components of deferred revenue:

 

 

 

September 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Franchise and area development fees

 

$

118,914

 

 

$

127,162

 

Brand fees

 

 

1,225

 

 

 

2,540

 

Equipment and other

 

 

17,220

 

 

 

22,277

 

Total deferred revenue

 

 

137,359

 

 

 

151,979

 

Non-current portion of deferred revenue

 

 

108,799

 

 

 

117,305

 

Current portion of deferred revenue

 

$

28,560

 

 

$

34,674