What was the amount of Engel & Volkers' operating lease liability (current) in 2023?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the company's operating lease liability (current) for the year 2023 was $401,949. This figure represents the portion of the company's total lease obligations due within the next 12 months, reflecting their short-term financial commitments related to leased properties or assets. This liability is a part of the total current liabilities, which amounted to $3,698,790 in 2023.
For a prospective Engel & Volkers franchisee, understanding the operating lease liabilities is crucial because it provides insight into the company's financial obligations and how efficiently it manages its lease agreements. A high operating lease liability might indicate substantial ongoing expenses that could affect profitability. Conversely, a well-managed lease portfolio can contribute to financial stability.
It's also important to note that the FDD includes additional details regarding the company's lease commitments. For instance, the cash paid for amounts included in the measurement of lease liability was $429,737 in 2023. The weighted-average remaining lease term for operating leases was 3.16 years, with a weighted-average discount rate of 2.5%. These metrics offer a more comprehensive view of Engel & Volkers' leasing strategy and its potential impact on the company's financial health.
Franchisees should consider these figures in conjunction with other financial data provided in the FDD to assess the overall financial stability and operational efficiency of Engel & Volkers. Consulting with a financial advisor to interpret these figures in the context of their investment is advisable.