Schedule of Disaggregation of Revenue |
The following table disaggregates revenue by Segment and source (in thousands): | | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2021: | Franchise Channel | | Corporate Channel | | Total | Type of revenue stream: | | | | | | Commissions and agency fees | | | | | | Renewal Commissions | $ | — | | | $ | 10,969 | | | $ | 10,969 | | New Business Commissions | — | | | 6,013 | | | 6,013 | | Agency Fees | — | | | 3,050 | | | 3,050 | | Contingent Commissions | 1,734 | | | 654 | | | 2,388 | | Franchise revenues | | | | | | Renewal Royalty Fees | 13,206 | | | — | | | 13,206 | | New Business Royalty Fees | 4,003 | | | — | | | 4,003 | | Initial Franchise Fees | 1,680 | | | — | | | 1,680 | | Other Franchise Revenues | 71 | | | — | | | 71 | | Interest Income | 301 | | | — | | | 301 | | Total Revenues | $ | 20,995 | | | $ | 20,686 | | | $ | 41,681 | | | | | | | | Timing of revenue recognition: | | | | | | Transferred at a point in time | $ | — | | | $ | 20,032 | | | $ | 20,032 | | Transferred over time | 20,995 | | | 654 | | | 21,649 | | Total Revenues | $ | 20,995 | | | $ | 20,686 | | | $ | 41,681 | |
| | | | | | | | | | | | | | | | | | Three Months Ended September 30, 2020: | Franchise Channel | | Corporate Channel | | Total | Type of revenue stream: | | | | | | Commissions and agency fees | | | | | | Renewal Commissions | $ | — | | | $ | 7,931 | | | $ | 7,931 | | New Business Commissions | — | | | 4,790 | | | 4,790 | | Agency Fees | — | | | 2,491 | | | 2,491 | | Contingent Commissions | 2,662 | | | 1,511 | | | 4,173 | | Franchise revenues | | | | | | Renewal Royalty Fees | 8,117 | | | — | | | 8,117 | | New Business Royalty Fees | 3,090 | | | — | | | 3,090 | | Initial Franchise Fees | 1,152 | | | — | | | 1,152 | | Other Franchise Revenues | 59 | | | — | | | 59 | | Interest Income | 212 | | | — | | | 212 | | Total Revenues | $ | 15,292 | | | $ | 16,723 | | | $ | 32,015 | | | | | | | | Timing of revenue recognition: | | | | | | Transferred at a point in time | $ | — | | | $ | 15,212 | | | $ | 15,212 | | Transferred over time | 15,292 | | | 1,511 | | | 16,803 | | Total Revenues | $ | 15,292 | | | $ | 16,723 | | | $ | 32,015 | |
| | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2021: | Franchise Channel | | Corporate Channel | | Total | Type of revenue stream: | | | | | | Commissions and agency fees | | | | | | Renewal Commissions | $ | — | | | $ | 29,036 | | | $ | 29,036 | | New Business Commissions | — | | | 16,573 | | | 16,573 | | Agency Fees | — | | | 8,579 | | | 8,579 | | Contingent Commissions | 4,986 | | | 1,833 | | | 6,819 | | Franchise revenues | | | | | — | | Renewal Royalty Fees | 33,622 | | | — | | | 33,622 | | New Business Royalty Fees | 10,840 | | | — | | | 10,840 | | Initial Franchise Fees | 4,570 | | | — | | | 4,570 | | Other Franchise Revenues | 202 | | | — | | | 202 | | Interest Income | 841 | | | — | | | 841 | | Total Revenues | $ | 55,061 | | | $ | 56,021 | | | $ | 111,082 | | | | | | | | Timing of revenue recognition: | | | | | | Transferred at a point in time | $ | — | | | $ | 54,188 | | | $ | 54,188 | | Transferred over time | 55,061 | | | 1,833 | | | 56,894 | | Total Revenues | $ | 55,061 | | | $ | 56,021 | | | $ | 111,082 | |
| | | | | | | | | | | | | | | | | | Nine Months Ended September 30, 2020: | Franchise Channel | | Corporate Channel | | Total | Type of revenue stream: | | | | | | Commissions and agency fees | | | | | | Renewal Commissions | $ | — | | | $ | 21,382 | | | $ | 21,382 | | New Business Commissions | — | | | 12,452 | | | 12,452 | | Agency Fees | — | | | 6,362 | | | 6,362 | | Contingent Commissions | 6,130 | | | 3,118 | | | 9,248 | | Franchise revenues | | | | | | Renewal Royalty Fees | 21,406 | | | — | | | 21,406 | | New Business Royalty Fees | 7,737 | | | — | | | 7,737 | | Initial Franchise Fees | 3,031 | | | — | | | 3,031 | | Other Franchise Revenues | 173 | | | — | | | 173 | | Interest Income | 573 | | | — | | | 573 | | Total Revenues | $ | 39,050 | | | $ | 43,314 | | | $ | 82,364 | | | | | | | | Timing of revenue recognition: | | | | | | Transferred at a point in time | $ | — | | | $ | 40,196 | | | $ | 40,196 | | Transferred over time | 39,050 | | | 3,118 | | | 42,168 | | Total Revenues | $ | 39,050 | | | $ | 43,314 | | | $ | 82,364 | |
|
Schedule of Contract Balances |
The following table provides information about receivables, cost to obtain, and contract liabilities from contracts with customers (in thousands): | | | | | | | | | | | | | | | | | | | September 30, 2021 | | December 31, 2020 | | Increase/(decrease) | Cost to obtain franchise contracts(1) | 1,871 | | | $ | 1,412 | | | $ | 459 | | Commissions and agency fees receivable, net(2) | 8,349 | | | 18,604 | | | (10,255) | | Receivable from franchisees(2) | 26,600 | | | 20,279 | | | 6,321 | | Contract liability(2)(3) | 44,609 | | | 34,201 | | | 10,408 | |
(1) Cost to obtain franchise contracts is included in Other assets on the condensed consolidated balance sheets. (2) Includes both the current and long term portion of this balance. (3) Initial Franchise Fees to be recognized over the life of the contract. Significant changes in contract liabilities are as follows (in thousands): | | | | | | | | Contract liability at December 31, 2020 | $ | 34,201 | | Revenue recognized during the period | (4,570) | | New deferrals(1) | 14,978 | | Contract liability at September 30, 2021 | 44,609 | |
(1) Initial Franchise Fees where the consideration is received from the customer for services which are to be transferred to the Franchisee over the expected life of the Franchise Agreement
|