What were the commission and other agent-related costs for Better Homes And Gardens Real Estate in 2024?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
ers LLP Florham Park, New Jersey February 25, 2025
We have served as the Company's auditor since 2009.
ANYWHERE REAL ESTATE INC. AND ANYWHERE REAL ESTATE GROUP LLC CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
| Year Ended December 31, | |||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | 2022 | |||||
| Revenues | |||||||
| Gross commission income | $ 4,629 | $ 4,570 | $ 5,538 | ||||
| Service revenue | 574 | 569 | 793 | ||||
| Franchise fees | 356 | 351 | 417 | ||||
| Other | 133 | 146 | 160 | ||||
| Net revenues | 5,692 | 5,636 | 6,908 | ||||
| Expenses | |||||||
| Commission and other agent-related costs | 3,718 | 3,664 | 4,415 | ||||
| Operating | 1,125 | 1,147 | 1,377 | ||||
| Marketing | 195 | 215 | 252 | ||||
| General and administrative | 392 | 422 | 388 | ||||
| Former parent legacy cost, net | 2 | 18 | 1 | ||||
| Restructuring costs, net | 32 | 49 | 32 | ||||
| Impairments | 20 | 65 | 483 | ||||
| Depreciation and amortization | 198 | 196 | 214 | ||||
| Interest expense, net | 153 | 151 | 113 | ||||
| (Gain) loss on the early extinguishment of debt | (7) | (169) | 96 | ||||
| Other income, net | — | — | (140) | ||||
| Total expenses | 5,828 | 5,758 | 7,231 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to Better Homes And Gardens Real Estate's 2025 Franchise Disclosure Document, the commission and other agent-related costs for the year ending December 31, 2024, were $3,718 million. This figure represents the expenses Better Homes And Gardens Real Estate incurred related to compensating its real estate agents. These costs are recognized concurrently with associated revenues.
For a prospective franchisee, this indicates a significant portion of the revenue is allocated to agent compensation. Understanding this cost structure is crucial for assessing the profitability and financial management of a Better Homes And Gardens Real Estate franchise. The franchisee needs to consider how agent commissions are structured, negotiated, and managed to maintain a healthy bottom line.
It's also worth noting that these costs can fluctuate based on market conditions, sales volume, and commission structures. Comparing these costs with previous years (2023 and 2022) can provide insights into trends and potential future expenses. Prudent financial planning and a clear understanding of agent-related expenses are essential for the success of a Better Homes And Gardens Real Estate franchise.