What is the depreciation timeframe for office equipment at an Engel & Volkers franchise?

According to Engel & Volkers's 2025 Franchise Disclosure Document, the company uses a straight-line depreciation method for property and equipment. The estimated useful life for office equipment is between 5 to 7 years. This means that Engel & Volkers depreciates the cost of office equipment evenly over this period.

For a prospective Engel & Volkers franchisee, this depreciation timeframe is relevant for financial planning and tax purposes. The franchisee can deduct a portion of the cost of the office equipment each year as a depreciation expense, which can lower their taxable income. The specific choice within the 5-to-7-year range can depend on factors like the expected usage and technological obsolescence of the equipment.

In addition to office equipment, Engel & Volkers also depreciates furniture and fixtures over a 5 to 7 year period. Leasehold improvements are depreciated over the lesser of the lease term or the estimated useful life of the improvements. Understanding these depreciation timelines is crucial for franchisees to accurately manage their assets and financial reporting.