What were Corcoran's intersegment revenues at December 31, 2024?
Corcoran Franchise · 2025 FDDAnswer from 2025 FDD Document
| Year Ended December 31, 2024 | |||||
|---|---|---|---|---|---|
| Beginning Balance at | Additions during the | Recognized as Revenue | Ending Balance at | ||
| January 1, 2024 | period | during the period | December 31, 2024 | ||
| Franchise Group (a) . . . . . . . . . . . . | $69 $ | 138 $ | (147) | $60 | |
| Owned Brokerage Group . . . . . . . . . . . . | 15 | 9 | (12) | 12 | |
| Total . . . . . . . . . . . . . . . . . . . . . . | $84 $ | 147 $ | (159) | $72 |
Source: Item 23 — RECEIPTS (FDD pages 75–276)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Corcoran provides details on receipts for the year ended December 31, 2024. The receipts are broken down by Franchise Group and Owned Brokerage Group. The 'Additions during the period' column reflects intersegment revenues. For the Franchise Group, additions during the period totaled $138, while the Owned Brokerage Group had additions of $9. The total additions during the period for both groups was $147.
These figures represent the revenues generated between Corcoran's different business segments. Intersegment revenues are important because they show how the different parts of Corcoran's business rely on each other. For example, the Franchise Group might receive revenue from the Owned Brokerage Group for services provided, or vice versa. Understanding these relationships can give a franchisee a better sense of the overall health and strategy of the company.
It's important to note that these are gross figures. The table also shows amounts 'Recognized as Revenue during the period'. This figure represents the amount of the additions that were actually recognized as revenue during the period, after any eliminations or adjustments. For the Franchise Group, $60 was recognized as revenue, while $12 was recognized for the Owned Brokerage Group, totaling $72.
Prospective franchisees should pay close attention to these intersegment revenue figures, as they can provide insights into the financial performance and relationships between different parts of the Corcoran organization. It is also important to compare these figures with previous years to identify any trends or changes in the company's intersegment revenue streams.