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Revenue Recognition | 9 Months Ended
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Sep. 30, 2022
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | NOTE 3 — Revenue Recognition Revenue The following table disaggregates revenue by major component:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
(in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Company-operated shops |  | $ | 173,501 |  |  | $ | 108,661 |  |  | $ | 464,200 |  |  | $ | 289,548 |  |  |
Franchising |  | 23,802 |  |  | 20,396 |  |  | 69,028 |  |  | 65,589 |  |  |
Other |  | 1,345 |  |  | 746 |  |  | 3,957 |  |  | 2,659 |  |  |
Total revenues |  | $ | 198,648 |  |  | $ | 129,803 |  |  | $ | 537,185 |  |  | $ | 357,796 |  |  |
Deferred Revenue Deferred revenue activity related to the Company’s loyalty and gift card programs was as follows:
|  | Nine Months Ended September 30,
(in thousands) |  | 2022 |  | 2021
Balance, December 31 |  | $ | 22,765 |  |  | $ | 10,576 |
Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned |  | 186,303 |  |  | 122,326 |
Revenue recognized - gift card, loyalty app, and loyalty rewards redemptions, and breakage |  | (180,538) |  |  | (116,967) |
Balance, September 30 |  | 28,530 |  |  | 15,935 |
Less: current portion |  | (25,371) |  |  | (13,681) |
Deferred revenue, net of current portion, gift card and loyalty programs |  | $ | 3,159 |  |  | $ | 2,254 |
Revenue recognized related to gift card redemptions that was included in deferred revenue as of the end of the previous years was $3.6 million and $3.5 million for the nine months ended September 30, 2022 and 2021, respectively. These amounts exclude cash loads and transactions for the Company’s loyalty rewards program. Deferred revenue also includes sales to distributors where the performance obligation has not been satisfied and control has not been transferred to the customer as of the reporting date, as well as initial unearned franchise fees from franchisees. These deferred revenues reported in the Company’s condensed consolidated balance sheets were as follows:
(in thousands) |  | September 30, 2022 |  | December 31, 2021
Outstanding performance obligations |  | $ | 3,027 |  |  | $ | 2,512 |
Initial unearned franchise fees from franchisees |  | 2,390 |  |  | 2,560 |
Total deferred revenue, excluding gift card and loyalty programs |  | 5,417 |  |  | 5,072 |
Less: current portion |  | (3,458) |  |  | (2,964) |
Deferred revenue, net of current portion, excluding gift card and loyalty programs |  | $ | 1,959 |  |  | $ | 2,108 |
Revenue recognized from initial unearned franchise fees was as follows for the periods presented:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30, |  |
(in thousands) |  | 2022 |  | 2021 |  | 2022 |  | 2021 |  |
Earned franchise fees |  | $ | 117 |  |  | $ | 198 |  |  | $ | 390 |  |  | $ | 514 |  |  |
Revenue recognized from earned franchise fees that was included in unearned revenue at the beginning of the year was $0.4 million and $0.5 million for the nine months ended September 30, 2022 and 2021, respectively. Future amortization of initial unearned franchise fees outstanding as of September 30, 2022 is as follows::
(in thousands) |  |
Remainder of 2022 |  | $ | 112 |
2023 |  | 419 |
2024 |  | 361 |
2025 |  | 307 |
2026 |  | 265 |
Thereafter |  | 926 |
Total |  | $ | 2,390 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI https://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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