factual

Has Engel & Volkers experienced any losses in their cash accounts?

Engel_Volkers Franchise · 2025 FDD

Answer from 2025 FDD Document

NOTE 4. CONCENTRATIONS OF CREDIT RISK

The Company places its cash and cash equivalents, which may at times be in excess of Federal Deposit Insurance Corporation ("FDIC") and Canada Deposit Insurance Corporation ("CDIC") insurance limits, with major financial institutions and attempts to limit the amount of credit exposure with any one institution. The Company has not experienced any losses in these accounts. Substantially all of the Company's cash balances are in excess of FDIC and CDIC limits at December 31, 2024 and 2023.

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 not experienced any losses in its cash accounts. The FDD states that Engel & Volkers places its cash and cash equivalents with major financial institutions and attempts to limit the amount of credit exposure with any one institution. These cash and cash equivalents may, at times, be in excess of Federal Deposit Insurance Corporation (FDIC) and Canada Deposit Insurance Corporation (CDIC) insurance limits. Substantially all of the Company's cash balances are in excess of FDIC and CDIC limits at December 31, 2024 and 2023.

This information is relevant for prospective franchisees as it provides insight into Engel & Volkers's financial management practices, specifically how they handle and safeguard their cash assets. The statement that Engel & Volkers has not experienced any losses in these accounts suggests a degree of stability and prudent risk management.

However, franchisees should note that while Engel & Volkers attempts to limit credit exposure with any one institution, their cash and cash equivalents may exceed FDIC and CDIC insurance limits. This means that in the unlikely event of a major financial institution failure, some of Engel & Volkers's cash holdings could be at risk. Prospective franchisees may want to inquire further about the specific institutions Engel & Volkers uses and the measures they take to mitigate this risk.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.