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Revenue Disclosures
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Disclosures Revenue Disclosures
Franchising Fees, Royalty Fees, Advertising Fund Revenue, and Software Fees
As of June 30, 2026, we had 896 franchised clinics in operation, 52 clinic licenses sold but not yet developed and 58 executed letters of intent for future clinic licenses. The franchise arrangement is documented in the form of a franchise agreement. The franchise arrangement requires us to perform various activities to support the brand that do not directly transfer goods and services to the franchisee, but instead represent a single performance obligation, which is the transfer of the franchise license. The intellectual property subject to the franchise license is symbolic intellectual property as it does not have significant standalone functionality and substantially all of the utility is derived from its association with our past or ongoing activities. The nature of our promise in granting the franchise license is to provide the franchisee with access to the brand’s symbolic intellectual property over the term of the license. The services provided by us are highly interrelated with the franchise license and as such are considered to represent a single performance obligation.
The transaction price in a standard franchise arrangement primarily consists of (a) initial franchise fees, (b) continuing franchise fees (royalties), (c) advertising fees, and (d) software fees. The revenue accounting standard provides an exception for the recognition of sales-based royalties promised in exchange for a license (which otherwise requires a reporting entity to estimate the amount of variable consideration to which it will be entitled in the transaction price).
We recognize the primary components of the transaction price as follows:
•Initial and renewal franchise fees, as well as transfer fees, are recognized as revenue ratably on a straight-line basis over the term of the respective franchise agreement, commencing with the execution of the franchise, renewal or transfer agreement. As these fees are typically received in cash at or near the beginning of the contract term, the cash received is initially recorded as a contract liability until recognized as revenue over time.
•We are entitled to royalties and advertising fees based on a percentage of the franchisee’s gross sales as defined in the franchise agreement. Royalty and advertising revenue are recognized when the franchisee’s sales occur. Depending on timing within a fiscal period, the recognition of revenue results in either what is considered a contract asset (unbilled receivable) or, once billed, accounts receivable, on the condensed consolidated balance sheet.
•We are entitled to a software fee, which is charged monthly. We recognize revenue related to software fees ratably on a straight-line basis over the term of the franchise agreement.
In determining the amount and timing of revenue from contracts with customers, we exercise significant judgment with respect to collectability of the amount; however, the timing of recognition does not require significant judgment as it is based on either the franchise term or the reported sales of the franchisee, neither of which requires estimation. We believe that our franchising arrangements do not contain a significant financing component.
We recognize advertising fees received under franchise agreements as advertising fund revenue.
Capitalized Sales Commissions
Sales commissions earned by the regional developers and our sales force are considered incremental and recoverable costs of obtaining a franchise agreement with a franchisee. These costs are deferred and then amortized as the respective franchise fees are recognized ratably on a straight-line basis over the term of the franchise agreement.
Disaggregation of Revenue
We believe that the captions contained on the condensed consolidated statements of operations appropriately reflect the disaggregation of our revenue by major type for the three and six months ended June 30, 2026 and 2025. Other revenues primarily consist of merchant income associated with preferred vendor royalties associated with franchisees’ credit card transactions.
The following table shows our revenues disaggregated according to the timing of transfer of services:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Revenue recognized at a point in time$12,883,996 $11,020,509 $25,024,260 $21,807,613 
Revenue recognized over time2,297,918 2,249,761 4,977,887 4,540,247 
Total revenue$15,181,914 $13,270,270 $30,002,147 $26,347,860 
Rollforward of Accounts Receivable
Changes in our accounts receivable, net during the six months ended June 30, 2026 were as follows:
Accounts Receivable, Net
Balance at December 31, 2025$2,849,864 
Cash received against accounts receivable included at the beginning of the year(2,596,399)
Net increase during the six months ended June 30, 20262,630,005 
Allowance for credit losses(476,390)
Balance at June 30, 2026$2,407,080 
Rollforward of Contract Liabilities and Contract Assets
Changes in our contract liability for deferred franchise fees during the six months ended June 30, 2026 were as follows:
Deferred Revenue Short and Long-Term
Balance at December 31, 2025$13,418,289 
Revenue recognized that was included in the contract liability at the beginning of the year(1,884,706)
Net increase during the six months ended June 30, 20261,026,271 
Balance at June 30, 2026$12,559,854 
Our deferred franchise and development costs represent capitalized sales commissions. Changes during the six months ended June 30, 2026 were as follows:
Deferred Franchise and Development Costs Short and Long-Term
Balance at December 31, 2025$4,773,062 
Cost of revenue recognized that was included in the contract asset at the beginning of the year(659,333)
Net increase during the six months ended June 30, 202641,422 
Balance at June 30, 2026$4,155,151 
The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that were unsatisfied (or partially unsatisfied) as of June 30, 2026:
Contract liabilities expected to be recognized inAmount
2026 (remainder)$1,267,425 
20272,414,027 
20282,233,749 
20291,899,478 
20301,637,472 
Thereafter3,107,703 
Total$12,559,854