What was the net loss for Engel & Volkers for the year ending December 31, 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| Shares | Amount | Capital | Deficit | Loss | Total | |
|---|---|---|---|---|---|---|
| Balance - January 1, 2022 | 17,143 | $ 171,430 | $ 34,285,342 | $ (18,911,739) | $ (8,582) | $15,536,451 |
| Net income | - | - | - | 3,560,109 | - | 3,560,109 |
| Other comprehensive loss: | - | - | - | - | (54,080) | (54,080) |
| Foreign currency translation | ||||||
| adjustment | ||||||
| Balance - December 31, 2022 | 17,143 | 171,430 | 34,285,342 | (15,351,630) | (62,662) | 19,042,480 |
| Net income | - | - | - | 1,761,556 | - | 1,761,556 |
| Other comprehensive income: | - | - | - | - | 30,285 | 30,285 |
| Foreign currency translation | ||||||
| adjustment | ||||||
| Balance - December 31, 2023 | 17,143 | 171,430 | 34,285,342 | (13,590,074) | (32,377) | 20,834,321 |
| Net loss | - | - | - | (4,048,100) | - | (4,048,100) |
| Other comprehensive loss: | - | - | - | - | (141,272) | (141,272) |
| Foreign currency translation | ||||||
| adjustment | ||||||
| BALANCE - DECEMBER 31, | 17,143 | $ 171,430 | $ 34,285,342 | $ (17,638,174) | $ (173,649) | $16,644,949 |
| 2024 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the company experienced a net loss of $4,048,100 for the year ending December 31, 2024. This figure is part of the consolidated financial statements, which have been audited by an independent auditor. The auditor's report confirms that the financial statements present fairly the financial position of Engel & Volkers Americas, Inc. and Subsidiary.
This net loss is a significant data point for potential franchisees to consider. It reflects the overall financial performance of Engel & Volkers during that period. While a single year's loss doesn't necessarily indicate long-term instability, it warrants further investigation. Prospective franchisees should analyze the factors contributing to the loss, such as increased expenses, decreased revenues, or specific one-time events.
To gain a comprehensive understanding, potential franchisees should compare this loss to Engel & Volkers' financial performance in previous years. The FDD includes financial statements for 2023 and 2022, which show net income of $1,761,556 and $3,560,109 respectively. Reviewing these trends will provide a better perspective on whether the 2024 loss is an anomaly or part of a larger pattern. Furthermore, it would be prudent to discuss the reasons for the loss and the strategies Engel & Volkers is implementing to improve future profitability with the franchisor.