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Revenue Recognition
 9 Months Ended
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)2022202120222021
Company-operated shops$173,501 $108,661 $464,200 $289,548 
Franchising23,802 20,396 69,028 65,589 
Other1,345 746 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)20222021
Balance, December 31$22,765 $10,576 
Revenue deferred - gift card activations, loyalty app loads, and loyalty points and rewards earned186,303 122,326 
Revenue recognized - gift card, loyalty app, and loyalty rewards redemptions, and breakage(180,538)(116,967)
Balance, September 3028,530 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, 2022December 31, 2021
Outstanding performance obligations$3,027 $2,512 
Initial unearned franchise fees from franchisees2,390 2,560 
Total deferred revenue, excluding gift card and loyalty programs5,417 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)2022202120222021
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 
2023419 
2024361 
2025307 
2026265 
Thereafter926 
Total$2,390