What relocation services does Better Homes And Gardens Real Estate offer through Cartus?
Better_Homes_And_Gardens_Real_Estate Franchise · 2025 FDDAnswer from 2025 FDD Document
see or ADF and is amortized over 30 years for domestic franchise agreements or the agreement term for international franchise agreements (generally 25 years). The amount of prepaid commissions was $28 million and $29 million at December 31, 2024 and 2023, respectively.
Franchise Other
Through Cartus, the Company offers a broad range of employee relocation services to clients designed to manage all aspects of transferring their employees ("transferees") and provides value through the generation of leads to real estate agent and brokerage participants. These services include, but are not limited to, homesale assistance, relocation policy counseling and group move management services, consulting services, expense processing and relocation-related accounting, compensation support and compliance, and visa and immigration support. The Company also arranges household goods moving services and provides support for all aspects of moving a transferee's household goods. There are a number of different revenue streams associated with relocation services including fees earned from real estate brokers and household goods moving companies that provide services to the transferee which are recognized at a point in time at the completion of services. The Company earns revenues from outsourcing management fees charged to clients that may cover several of the relocation services listed above, according to the clients' specific needs. Outsourcing management fees are recorded as deferred revenue when billed (usually at the start of the relocation) and are recognized as revenue over the average time period required to complete the transferee's move, or a phase of the move that the fee covers, which is typically 3 to 6 months depending on the move type. The balance for deferred outsourcing management fees remained flat at $3 million at January 1, 2024 and Decembe
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 FDD, Better Homes And Gardens Real Estate, through Cartus, provides a range of employee relocation services to clients, managing various aspects of employee transfers. These services are designed to generate leads for real estate agents and brokerage participants within the Better Homes And Gardens Real Estate network.
The relocation services offered include homesale assistance, relocation policy counseling, and group move management. Additionally, Better Homes And Gardens Real Estate provides consulting services, expense processing, relocation-related accounting, compensation support, compliance assistance, and visa and immigration support. The company also arranges household goods moving services, supporting all aspects of moving an employee's household goods.
Better Homes And Gardens Real Estate generates revenue from these relocation services through fees from real estate brokers and household goods moving companies, recognized upon completion of services. They also earn outsourcing management fees charged to clients, covering various relocation services based on the client's needs. These outsourcing management fees are initially recorded as deferred revenue and recognized over a period typically lasting 3 to 6 months, depending on the move type. The balance for deferred outsourcing management fees remained flat at $3 million at January 1, 2024 and December 31, 2024 due to a $38 million increase primarily related to additions for management fees billed on new relocation files in advance of the Company satisfying its performance obligation, offset by $38 million of revenues recognized during the year as performance obligations were satisfied.
For a prospective Better Homes And Gardens Real Estate franchisee, these relocation services represent a potential source of leads and revenue. By participating in the Cartus relocation network, franchisees can gain access to clients transferring employees, thereby increasing their transaction volume. The fees generated from these services can supplement traditional real estate commissions, offering a diversified revenue stream.