What was the reported value of the Engel & Volkers acquired master franchise license in 2024?
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 value of the acquired master franchise license in 2024 was $11,771,742. This figure represents the initial value of the master franchise license held by Engel & Volkers. The document also shows that the franchise license was valued at $70,000 in 2024.
However, accumulated amortization is deducted from these values. Accumulated amortization for the acquired master franchise license and franchise license totaled $11,841,742. After accounting for accumulated amortization, the net intangible assets for Engel & Volkers amounted to $8,321,404 in 2024.
Prospective franchisees should understand how amortization affects the reported value of intangible assets like franchise licenses, as it reflects the expense recognized over time as the asset's value is consumed. Reviewing the complete financial statements and notes is crucial to understanding the overall financial health and performance of Engel & Volkers.