What was the amount of intersegment revenues for the Corcoran Franchise Group?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
$ | 248 $ 5,839 | | | Capital expenditures . . . . . . . . . . . . . . . . . . . | | | | | | | 28 24 | 7 59 | 13 72 | | | Investment in equity method investees . . . . . | | — 26 | 152 178 | — 178 | | Depreciation and amortization . . . . . . . . . . . . | 114 52 | 12 178 | 18 196 | | (a) Intersegment revenues include intercompany royalties and marketing fees paid by Owned Brokerage Group to Franchise Group and are eliminated in consolidation.
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(b) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown.
(c) General and administrative expenses exclude non-cash stock-based compensation and legal contingencies unrelated to normal operations which currently includes industry-wide antitrust lawsuits and class action lawsuits.
(d) Other segment items include Net income (loss) attributable to noncontrolling interests and other non-operating items. Amounts are immaterial to each segment.
| Franchise Group | Owned Brokerage Group | Title Group | Totals | |
|---|---|---|---|---|
| Net revenues from external customers | $ 668 | $ 4,628 | $ 340 | $ 5,636 |
| Intersegment revenues (a) | 315 | — | — | 315 |
| Segment net revenues | 983 | 4,628 | 340 | 5,951 |
| R |
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
According to Corcoran's 2025 Franchise Disclosure Document, intersegment revenues for the Franchise Group were detailed for multiple periods. In one instance, the intersegment revenues totaled $315. In another instance, the intersegment revenues totaled $373. In yet another instance, the intersegment revenues totaled $319.
Intersegment revenues, as clarified in a note, specifically include intercompany royalties and marketing fees that the Owned Brokerage Group pays to the Franchise Group. These revenues are then eliminated during the consolidation of financial statements, which is a standard accounting practice to avoid double-counting revenues within the same overall company.
For a prospective Corcoran franchisee, understanding intersegment revenues is crucial because it reflects the financial interactions between different parts of the Corcoran organization. While these revenues don't represent external sales, they do indicate the financial obligations of the Owned Brokerage Group to the Franchise Group, which could indirectly affect the resources available for supporting franchisees. Franchisees should focus on the overall financial health and revenue trends of the Franchise Group, as these factors will likely have a more direct impact on the support and services they receive.