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Revenue (Tables)
9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table disaggregates revenue by Segment and source (in thousands):
Three Months Ended September 30, 2021:Franchise ChannelCorporate ChannelTotal
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 Commissions1,734 654 2,388 
Franchise revenues
Renewal Royalty Fees13,206 — 13,206 
New Business Royalty Fees4,003 — 4,003 
Initial Franchise Fees1,680 — 1,680 
Other Franchise Revenues71 — 71 
Interest Income301 — 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 time20,995 654 21,649 
Total Revenues$20,995 $20,686 $41,681 
Three Months Ended September 30, 2020:Franchise ChannelCorporate ChannelTotal
Type of revenue stream:
Commissions and agency fees
Renewal Commissions$— $7,931 $7,931 
New Business Commissions— 4,790 4,790 
Agency Fees— 2,491 2,491 
Contingent Commissions2,662 1,511 4,173 
Franchise revenues
Renewal Royalty Fees8,117 — 8,117 
New Business Royalty Fees3,090 — 3,090 
Initial Franchise Fees1,152 — 1,152 
Other Franchise Revenues59 — 59 
Interest Income212 — 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 time15,292 1,511 16,803 
Total Revenues$15,292 $16,723 $32,015 
Nine Months Ended September 30, 2021:Franchise ChannelCorporate ChannelTotal
Type of revenue stream:
Commissions and agency fees
Renewal Commissions$— $29,036 $29,036 
New Business Commissions— 16,573 16,573 
Agency Fees— 8,579 8,579 
Contingent Commissions4,986 1,833 6,819 
Franchise revenues— 
Renewal Royalty Fees33,622 — 33,622 
New Business Royalty Fees10,840 — 10,840 
Initial Franchise Fees4,570 — 4,570 
Other Franchise Revenues202 — 202 
Interest Income841 — 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 time55,061 1,833 56,894 
Total Revenues$55,061 $56,021 $111,082 


Nine Months Ended September 30, 2020:Franchise ChannelCorporate ChannelTotal
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 Commissions6,130 3,118 9,248 
Franchise revenues
Renewal Royalty Fees21,406 — 21,406 
New Business Royalty Fees7,737 — 7,737 
Initial Franchise Fees3,031 — 3,031 
Other Franchise Revenues173 — 173 
Interest Income573 — 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 time39,050 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, 2021December 31, 2020Increase/(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