What was the amount associated with the shares of Engel & Volkers as of December 31, 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
(4,048,100) | 1,761,556 | 3,560,109 | | Other comprehensive income (loss): | (141,272) | 30,285 | (54,080) | | Foreign currency translation adjustment | | | | | COMPREHENSIVE INCOME (LOSS) | $ (4,189,372) | $ 1,791,841 | $ 3,506,029 |
ENGEL & VÖLKERS AMERICAS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| Shares | Amount | Capital | Deficit | Loss | Total | |
|---|---|---|---|---|---|---|
| Balance - January 1, 2022 | 17,143 | $ 171,430 | $ 34,285,342 | $ (18,911,739) | $ (8,582) | $15,536,451 |
| Net income | - | - | - | 3,560,109 | - | 3,560,109 |
| Other comprehensive loss: | - | - | - | - | (54,080) | (54,080) |
| Foreign currency translation | ||||||
| adjustment | ||||||
| Balance - December 31, 2022 | 17,143 | 171,430 | 34,285,342 | (15,351,630) | (62,662) | 19,042,480 |
| Net income | - | - | - | 1,761,556 | - | 1,761,556 |
| Other comprehensive income: | - | - | - | - | 30,285 | 30,285 |
| Foreign currency translation | ||||||
| adjustment | ||||||
| Balance - December 31, 2023 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the balance of shares as of December 31, 2024, was 17,143 shares, with a total amount of $171,430. The capital was $34,285,342, with a deficit of $(17,638,174). The net loss was $(173,649), resulting in a total of $16,644,949.
These figures reflect the cumulative financial position of Engel & Volkers at the end of 2024, incorporating net losses and other comprehensive losses, such as foreign currency translation adjustments. The 'deficit' represents accumulated losses over the years, reducing the overall shareholders' equity. The 'capital' likely refers to the initial investment or paid-in capital by shareholders.
For a prospective franchisee, this data provides a snapshot of the company's financial health and historical performance. While the company has a substantial capital base, the accumulated deficit and recent net losses could be areas of concern. It's important to consider these figures in the context of the company's overall financial strategy and future projections.
It would be prudent for potential franchisees to further investigate the reasons behind the net losses and the strategies Engel & Volkers plans to implement to improve profitability. Understanding the factors contributing to these financial results can help franchisees assess the risks and opportunities associated with investing in the franchise.