What was the capitalized software amount for Engel & Volkers in 2023?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Office equipment | $ 368,454 | $ 352,302 |
| Furniture and fixtures | 570,782 | 564,144 |
| Leasehold improvements | 935,553 | 935,553 |
| 1,874,789 | 1,851,999 | |
| Less: accumulated depreciation and | 1,494,803 | 1,310,118 |
| amortization | ||
| Property and equipment, ne |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the capitalized software amount for the company in 2023 was $4,347,574. This figure represents the company's investment in software that has been capitalized on their balance sheet, meaning its cost is spread out over its useful life rather than expensed immediately. This indicates a significant investment in technology assets that Engel & Volkers uses in its operations.
For a prospective franchisee, understanding the capitalized software amount can provide insights into the technological infrastructure and resources that Engel & Volkers provides. It suggests that Engel & Volkers invests in and relies on software to support its business activities. The capitalized software is subject to amortization, and the amortization expense on capitalized software was $771,150 for the year ended December 31, 2023.
Reviewing the capitalized software amount alongside related expenses like amortization and IT support agreements can give a more complete picture of Engel & Volkers' technology costs. A franchisee might want to inquire about the specific software included in this amount, how it benefits franchisees, and any ongoing costs or requirements associated with using the software.