Choice Hotels International CHH Initial franchise fees — Contract with customer, liability
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Where this comes from
Reported directly by Choice Hotels International in its filing.
Tagged under the XBRL concept us-gaap:ContractWithCustomerLiability.
The source filing: Choice Hotels International’s 10-K, filed February 19, 2026.
- Filed
- Feb 19, 2026, 12:55 PM EST
- Fiscal year
- FY2025
- Accession
- 0001046311-26-000008
Deferred revenues from initial franchise fees are typically recognized over a ten-year period, unless the franchise agreement is terminated and the hotel exits the franchise system whereby the remaining deferred revenue amounts are recognized to revenue in the period of termination. As of December 31, 2025 and 2024, deferred revenues from initial franchise fees were $103.0 million and $111.2 million, respectively. Loyalty points are typically redeemed within three years of issuance. As of December 31, 2025 and 2024, deferred revenues from the loyalty program were $114.9 million and $110.4 million, respectively.
Item 8.Financial Statements and Supplementary Data
FAQ
- What is Choice Hotels International's initial franchise fees — contract with customer, liability?
- Choice Hotels International (CHH) reported initial franchise fees — contract with customer, liability of $103M in Q4 2025.
- How has Choice Hotels International's initial franchise fees — contract with customer, liability changed year-over-year?
- Choice Hotels International's initial franchise fees — contract with customer, liability decreased by 7.4% year-over-year, from $111.2M to $103M.
- What does initial franchise fees — contract with customer, liability mean?
- This metric represents the deferred revenue liability associated with initial franchise and relicensing fees that have been collected but not yet recognized as income. It reflects the portion of upfront payments that will be amortized over the term of the franchise agreement as performance obligations are satisfied. Monitoring this balance provides insight into the pipeline of future revenue recognition and the company's long-term contractual obligations to its franchisees.
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