v3.22.2.2
Deferred revenue
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Deferred revenue Deferred revenue
Deferred revenue results from establishment fees paid by franchisees at the outset of the contract term and the value of material rights related to discounted renewal options as well as equipment fees paid by franchisees prior to the transfer of the equipment. The following tables reflect the change in deferred revenue during the three and nine months ended September 30, 2022 and 2021 (in thousands):

Deferred Revenue
Balance at December 31, 2021$14,522 
  Revenue recognized(23,943)
  Increase20,403 
Balance at June 30, 2022$10,982 
  Revenue recognized(9,877)
  Increase7,631 
Balance at September 30, 2022$8,736 
Deferred Revenue
Balance at December 31, 2020$14,095 
  Revenue recognized(7,016)
  Increase10,571 
Balance at March 31, 202117,650 
  Revenue recognized(4,507)
  Increase4,822 
Balance at June 30, 202117,965 
  Revenue recognized(9,143)
  Increase5,873 
Balance at September 30, 2021$14,695 

Deferred revenue expected to be recognized within one year from the balance sheet date is classified as current, and the remaining balance is classified as non-current. Transaction price allocated to remaining performance obligations represents contracted franchise and equipment revenue that has not yet been recognized, which includes deferred revenue recognized as revenue in future periods. Total contract revenues from franchisees yet to be recognized as revenue was $177.5 million as of September 30, 2022, of which the Company expects to recognize approximately 24% of the revenue over the next 12 months and the remainder thereafter.