REVENUE RECOGNITION (Tables)

9 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Disaggregation of revenue

The following table disaggregates revenue by timing of revenue recognition and is reconciled to reportable segment revenues as follows:

	Three Months Ended March 31, 2021				Three Months Ended March 31, 2020
	Franchise		Company-owned		Franchise		Company-owned
	(Dollars in thousands)
Revenue recognized at a point in time:
Service	$	—	$	24,645	$	—	$	78,387
Product	13,079		7,691		15,318		19,559
Total revenue recognized at a point in time	$	13,079	$	32,336	$	15,318	$	97,946
Revenue recognized over time:
Royalty and other franchise fees	$	17,955	$	—	$	16,487	$	—
Advertising fund fees (refunds), net (1)	5,580		—		(7,789)		—
Franchise rental income	31,317		—		31,821		—
Total revenue recognized over time	54,852		—		40,519		—
Total revenue	$	67,931	$	32,336	$	55,837	$	97,946

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(1)Fiscal year 2020 includes the refund of $14.9 million of previously collected cooperative advertising fees. Cooperative advertising fees were not refunded in fiscal year 2021.

	Nine Months Ended March 31, 2021				Nine Months Ended March 31, 2020
	Franchise		Company-owned		Franchise		Company-owned
	(Dollars in thousands)
Revenue recognized at a point in time:
Service	$	—	$	90,040	$	—	$	322,133
Product	41,057		27,608		45,287		79,229
Total revenue recognized at a point in time	$	41,057	$	117,648	$	45,287	$	401,362
Revenue recognized over time:
Royalty and other franchise fees	$	46,589	$	—	$	52,721	$	—
Advertising fund fees	14,804		—		13,341		—
Franchise rental income	95,885		—		96,875		—
Total revenue recognized over time	157,278		—		162,937		—
Total revenue	$	198,335	$	117,648	$	208,224	$	401,362

Schedule of receivables, broker fees and deferred revenue

Information about receivables, broker fees and deferred revenue subject to the current revenue recognition guidance is as follows:

	March 31, 2021		June 30, 2020		Balance Sheet Classification
	(Dollars in thousands)
Receivables from contracts with customers, net	$	22,106	$	22,991	Accounts receivable, net
Broker fees	19,599		20,516		Other assets
Deferred revenue:
Current
Gift card liability	$	2,336	$	2,543	Accrued expenses
Deferred franchise fees unopened salons	80		77		Accrued expenses
Deferred franchise fees open salons	5,929		5,537		Accrued expenses
Total current deferred revenue:	$	8,345	$	8,157
Non-current
Deferred franchise fees unopened salons	$	7,656	$	11,855	Other non-current liabilities
Deferred franchise fees open salons	33,001		33,623		Other non-current liabilities
Total non-current deferred revenue	$	40,657	$	45,478

Rollforward of allowance for doubtful accounts

The following table is a rollforward of the allowance for doubtful accounts for the period (in thousands):

Balance as of June 30, 2020	$	6,899
Provision for doubtful accounts (1)	792
Provision for franchisee rent (2)	907
Write-offs	(1,436)
Balance as of March 31, 2021	$	7,162

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(1)The provision for doubtful accounts is recognized as General and administrative expense in the unaudited Condensed Consolidated Statement of Operations.

(2)The provision for franchisee rent is recognized as Rent in the unaudited Condensed Consolidated Statement of Operations.

Broker fees

The following table is a rollforward of the broker fee balance for the periods indicated (in thousands):

Balance as of June 30, 2020	$	20,516
Additions	1,573
Amortization	(2,369)
Write-offs	(121)
Balance as of March 31, 2021	$	19,599

Estimated revenue expected to be recognized

Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of March 31, 2021 is as follows (in thousands):

Remainder of 2021	$	1,505
2022	5,901
2023	5,725
2024	5,483
2025	5,092
Thereafter	15,224
Total	$	38,930