Revenue from Contract with Customers |
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| Revenue from Contract with Customers | 8. Revenue from contracts with customers Contract liabilities consist of deferred revenue resulting from franchise fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Also included are service revenues from corporate-owned centers, including customer prepayments in connection with the Wax Pass program. Contract liabilities are classified as deferred revenue on the condensed consolidated balance sheets. Deferred franchise fees are reduced as fees are recognized in revenue over the term of the franchise license for the respective center. Deferred service revenues are recognized over time as the services are performed. The following table reflects the change in contract liabilities for the periods indicated:
During the 13 and 26 weeks ended July 5, 2025, the Company recognized $854 and $1,866, respectively, in revenue that was included in the contract liability as of January 4, 2025. During the 13 and 26 weeks ended July 6, 2024, the Company recognized $1,181 and $3,044, respectively, in revenue that was included in the contract liability as of January 6, 2024. The weighted average remaining amortization period for deferred revenue is 3.2 years. The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of July 5, 2025. The Company has elected to exclude short term contracts, sales-based royalties and any other variable consideration recognized on an “as invoiced” basis.
The summary set forth below represents the balances in deferred revenue as of July 5, 2025 and January 4, 2025:
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