How much in admission fees did Engel & Volkers recognize during the year 2023?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ecember 31, 2024 and 2023:
| 2024 | 2023 | |
|---|---|---|
| Franchise units not yet opened | $ 327,894 | $ 425,237 |
| Opened franchise units | 646,254 | 681,084 |
| Total | $ 974,148 | $ 1,106,321 |
Significant changes in deferred admission fees and up-front fees from direct and master franchisees for the years ended December 31, 2024 and 2023, are as follows:
| | 2024 | 2023 | |------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the company recognized $440,642 in admission fees during the year 2023. This figure represents the amount of initial and other up-front fees that Engel & Volkers recognized as revenue during that specific year. These fees are typically associated with new franchisees joining the Engel & Volkers system or existing franchisees renewing their agreements.
It is important to note that this figure reflects the amount of admission fees recognized as revenue, not necessarily the total amount of cash received from franchisees during that year. The timing of revenue recognition can differ from the timing of cash receipts due to accounting principles. For example, if Engel & Volkers receives an initial franchise fee in one year but provides the related services over a period of time, the revenue may be recognized over that period rather than entirely in the year of receipt.
For a prospective Engel & Volkers franchisee, understanding how admission fees are recognized is crucial for assessing the company's financial performance and stability. It also provides insight into the revenue streams that support the franchise system. Reviewing the trend of admission fees recognized over several years, as presented in the table, can help potential franchisees evaluate the growth and sustainability of the Engel & Volkers franchise model.