What was the accumulated deficit for Engel & Volkers in 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
324,000 | 323,966 | | Intangible assets, net | 8,321,404 | 8,930,287 | | Capitalized software, net | 3,140,323 | 2,781,712 | | Deferred income taxes, net | 1,072,576 | 1,077,324 | | Total other assets | 13,898,051 | 14,269,740 | | TOTAL ASSETS | $ 26,822,688 | $ 26,366,821 |
ENGEL & VÖLKERS AMERICAS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (CONTINUED) DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 399,426 | $ | 809,830 | ||
| Accrued expenses and other current liabilities | 4,819,971 | 1,853,273 | ||||
| Operating lease liability - current | 411,998 | 401,949 | ||||
| Income taxes payable | 13,141 | 314,605 | ||||
| Contract liabilities - current | 171,689 | 178,307 | ||||
| Due to affiliates, net | - | 140,826 | ||||
| Total current liabilities | 5,816,225 | 3,698,790 | ||||
| Long-term liabilities: | ||||||
| Lease liability, net of current | 493,698 | 905,696 | ||||
| Other long-term liabilities | 3,065,357 | - | ||||
| Contract liabilities, net of current | 802,459 | 928,014 | ||||
| Total long-term liabilities | 4,361,514 | 1,833,710 | ||||
| Total liabilities | 10,177,739 | 5,532,500 | ||||
| Commitments and contingencies (Notes 11 and 13) | ||||||
| Shareholders' | ||||||
| equity: | ||||||
| Common stock - $10 par value; 100,000 shares authorized, | ||||||
| 17,143 shares issued and outstanding |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the accumulated deficit as of December 31, 2024, was $(17,638,174). This figure represents the total losses and deficits that Engel & Volkers has accumulated over its operating history, which have not been offset by profits. In comparison, the accumulated deficit as of December 31, 2023, was $(13,590,074).
The increase in accumulated deficit from 2023 to 2024 indicates that Engel & Volkers experienced net losses during 2024, adding to its overall accumulated deficit. This is a critical financial metric for prospective franchisees to consider, as it provides insight into the company's overall profitability and financial stability. A significant accumulated deficit may raise concerns about the company's ability to sustain operations and support its franchisees in the long term.
It is important for potential franchisees to investigate the reasons behind the accumulated deficit and the strategies Engel & Volkers is implementing to address it. Further analysis of the financial statements, including the consolidated statements of comprehensive income (loss) and cash flows, would provide a more complete understanding of the company's financial performance and future prospects. Consulting with a financial advisor is recommended to assess the risks and opportunities associated with investing in an Engel & Volkers franchise, given its financial history.