Revenue Disclosures

3 Months Ended

Mar. 24, 2024

Revenue from Contract with Customer [Abstract]

Revenue Disclosures

7. Revenue Disclosures

Contract Liabilities

Contract liabilities primarily consist of deferred franchise fees and deferred development fees. Deferred franchise fees and deferred development fees of $5.3 million were included in current other accrued liabilities as of both March 24, 2024 and December 31, 2023. Deferred franchise fees and deferred development fees of $19.8 million and $19.9 million were included in long-term other accrued liabilities as of March 24, 2024 and December 31, 2023, respectively.

Changes in deferred franchise fees and deferred development fees for the first quarters of 2024 and 2023 were as follows:

	Fiscal Quarter Ended
	March 24,			March 26,
	2024			2023
Deferred franchise fees and deferred development fees, beginning of period	$	25,195		$	28,225
Revenue recognized during the period		(1,364	)		(1,448	)
New deferrals due to cash received and other		1,330			1,162
Deferred franchise fees and deferred development fees, end of period	$	25,161		$	27,939

Advertising Fund Assets

As of March 24, 2024, advertising fund assets, restricted of $77.0 million consisted of $56.0 million of cash and cash equivalents, $12.9 million of accounts receivable and $8.1 million of prepaid expenses. As of March 24, 2024, advertising fund cash and cash equivalents included $1.8 million of cash contributed from U.S. Company-owned stores that had not yet been expended.

As of December 31, 2023, advertising fund assets, restricted of $106.3 million consisted of $88.2 million of cash and cash equivalents, $14.0 million of accounts receivable and $4.1 million of prepaid expenses. As of December 31, 2023, advertising fund cash and cash equivalents included $2.1 million of cash contributed from U.S. Company-owned stores that had not yet been expended.

Change in Advertising Fund Contributions and Technology Fees

As previously announced, as of March 27, 2023, Domino's National Advertising Fund Inc., the Company’s consolidated not-for-profit advertising subsidiary, effectuated a temporary reduction of 0.25% to its standard 6.0% advertising contribution rate, which expired at the beginning of the second quarter of 2024, on March 25, 2024.

Additionally, as of March 25, 2025, the Company decreased the U.S. digital per-transaction technology fees that are recognized as the related U.S. franchise retail sales occur by $0.04 to $0.355.