With which company does Engel & Volkers have marketing and support agreements?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
(loss). The net expense related to the IT support agreements for the years ended December 31, 2024, 2023 and 2022, was $1,173,642, $1,085,050, and $911,844, respectively. At December 31, 2024, the amount outstanding from Engel & Völkers Technology was $250 and is included in "Due from affiliates, net" in the accompanying consolidated balance sheets. There was no amount outstanding from Engel & Völkers Technology at December 31, 2023.
The Company has entered into marketing and support agreements with Grund Genug, a company affiliated through common ownership, which allows for the reimbursement of certain marketing and support costs. The costs related to the agreements are included in "Selling, general and administrative expenses" in the accompanying consolidated statements of comprehensive income (loss). The net expense related to the marketing and support agreements for the years ended December 31, 2024, 2023 and 2022, was $846,442, $755,977 and $770,810, respectively. In addition to the previously mentioned agreements, the Company pays for certain administrative expenses on behalf of its affiliates which are then reimbursed and also reimburses its affiliates for certain administrative expenses paid for on its behalf.
Expenses that the Company is to reimburse its affiliates for and that the Company pays for on behalf of its affil
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the company has marketing and support agreements with Grund Genug, which is a company affiliated through common ownership. These agreements allow for the reimbursement of certain marketing and support costs. The costs associated with these agreements are categorized under "Selling, general and administrative expenses" in the consolidated statements of comprehensive income (loss).
The net expenses related to these marketing and support agreements were $846,442 for the year ended December 31, 2024, $755,977 for 2023, and $770,810 for 2022. Additionally, Engel & Volkers pays for certain administrative expenses on behalf of its affiliates, which are then reimbursed, and also reimburses its affiliates for certain administrative expenses paid on its behalf.
At December 31, 2024, the amount associated with these support agreements was $94,150 due to affiliates, while at December 31, 2023, the amount was $52,602 due to affiliates. These expenses that Engel & Volkers is to reimburse its affiliates for, and that the company pays for on behalf of its affiliates, are included in "Due from (to) affiliates, net" in the consolidated balance sheets and in "Selling, general and administrative expenses" in the consolidated statements of comprehensive income (loss).