What was the net value of intangible assets for Engel & Volkers in 2023?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
respectively.
NOTE 7. CAPITALIZED SOFTWARE (CONTINUED)
As of December 31, 2024, estimated amortization expense for the next three years is summarized as follows:
| Year ending December 31: | Amount |
|---|---|
| 2025 | $ 1,795,355 |
| 2026 | 1,297,116 |
| 2027 | 47,852 $ 3,140,323 |
NOTE 8. INTANGIBLE ASSETS
Intangible assets consisted
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the net value of intangible assets for the company in 2023 was $8,930,287. This figure represents the value of assets that are not physical, such as franchise licenses, after accounting for accumulated amortization. These intangible assets are a component of Engel & Volkers' overall financial health and are detailed in the consolidated balance sheets. Intangible assets are amortized over time, and this amortization is reflected as an expense in the company's financial statements.
For a prospective franchisee, understanding the value and amortization of intangible assets can provide insight into the financial management and long-term planning of Engel & Volkers. The consistent amortization expense of $608,883 for the years 2022, 2023, and 2024 indicates a steady and predictable depreciation of these assets. This can be a factor in assessing the stability and financial forecasting of the company. The acquired master franchise license and franchise license values remain constant at $11,771,742 and $70,000 respectively, suggesting long-term investments that are not subject to immediate fluctuations.
The table provided in the FDD breaks down the components of intangible assets, showing the initial value of the acquired master franchise license and franchise license, as well as the accumulated amortization. This level of detail allows potential investors to see how the net value of intangible assets is derived and how it changes over time. The decrease in net intangible assets from $8,930,287 in 2023 to $8,321,404 in 2024 is due to the increase in accumulated amortization, reflecting the ongoing depreciation of these assets.
It is important for a potential Engel & Volkers franchisee to review these financial statements carefully, possibly with the assistance of a financial advisor, to fully understand the implications of these intangible assets and their amortization on the company's financial performance. Understanding these figures can aid in evaluating the overall financial stability and future prospects of Engel & Volkers.