Revenue recognition

9 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Contract Liabilities

Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees and area development agreement (“ADA”) fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement. Also included are corporate-owned store enrollment fees, annual fees and monthly fees as well as deferred equipment rebates relating to our equipment business. We classify these contract liabilities as deferred revenue in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities between December 31, 2018 and September 30, 2019.



	Contract liabilities
Balance at December 31, 2018	$	49,862
Revenue recognized that was included in the contract liability at the beginning of the year	(23,082		)
Increase, excluding amounts recognized as revenue during the period	29,390
Balance at September 30, 2019	$	56,170

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 September 30, 2019. The Company has elected to exclude short term contracts, sales and usage based royalties and any other variable consideration recognized on an “as invoiced” basis.



Contract liabilities to be recognized in:	Amount
Remainder of 2019	$	12,422
2020	13,129
2021	3,279
2022	3,061
2023	2,818
Thereafter	21,461
Total	$	56,170