What is included in 'General and administrative' expenses for Better Homes And Gardens Real Estate?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
| MAKER: | ___________________________ |
|---|---|
| CO-MAKER(S): | ___________________________ |
| HOLDER: | BETTER HOMES AND GARDENS REAL ESTATE LLC |
| PLACE FOR PAYMENT: | 175 PARK AVENUE, MADISON, NJ |
| PRINCIPAL: | $__________________ |
| ANNUAL INTEREST RATE: | 0%, EXCEPT AS DESCRIBED BELOW |
| MATURITY DATE: | December 31, 20__ |
| MAKER: | ___________________________ |
| CO-MAKER(S): | ___________________________ |
| HOLDER: | BETTER HOMES AND GARDENS REAL ESTATE LLC |
| PLACE FOR PAYMENT: | 175 PARK AVENUE, MADISON, NJ |
| PRINCIPAL: | $__________________ |
| ANNUAL INTEREST RATE: | 0%, EXCEPT AS DESCRIBED BELOW |
| MATURITY DATE: | December 31, 20___ |
| and restoration of Debtor’s facilities or Offices (as defined in the Franchise Agreements). | |
| SECTION 5 -- DUTIES | OF SECURED |
| (In millions, except per share data) | |
| Revenues | |
| Gross commission income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | |
| 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | |
| Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 5,828 5,758 7,231 |
Source: Item 23 — RECEIPTS (FDD pages 76–362)
What This Means (2025 FDD)
According to the 2025 FDD, Better Homes And Gardens Real Estate's expenses are categorized in several ways. These include commission and other agent-related costs, operating expenses, marketing expenses, general and administrative expenses, former parent legacy cost, net restructuring costs, net impairments, depreciation and amortization, interest expense, net (gain) loss on the early extinguishment of debt and other income, net.
The FDD provides specific figures for 'General and administrative' expenses over three years. In 2022, these expenses totaled $388 million. They increased to $422 million in 2023, then decreased to $392 million in 2024.
However, the FDD excerpt does not detail what specific costs are included within the 'General and administrative' category. A prospective franchisee should ask Better Homes And Gardens Real Estate for a detailed breakdown of what is included in 'General and administrative' expenses to understand what these costs consist of. This will allow for a better understanding of the franchisor's expenses.