What was the total amount of Engel & Volkers' long-term liabilities in 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
324,000 | 323,966 | | Intangible assets, net | 8,321,404 | 8,930,287 | | Capitalized software, net | 3,140,323 | 2,781,712 | | Deferred income taxes, net | 1,072,576 | 1,077,324 | | Total other assets | 13,898,051 | 14,269,740 | | TOTAL ASSETS | $ 26,822,688 | $ 26,366,821 |
ENGEL & VÖLKERS AMERICAS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (CONTINUED) DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |||||
|---|---|---|---|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 399,426 | $ | 809,830 | ||
| Accrued expenses and other current liabilities | 4,819,971 | 1,853,273 | ||||
| Operating lease liability - current | 411,998 | 401,949 | ||||
| Income taxes payable | 13,141 | 314,605 | ||||
| Contract liabilities - current | 171,689 | 178,307 | ||||
| Due to affiliates, net | - | 140,826 | ||||
| Total current liabilities | 5,816,225 | 3,698,790 | ||||
| Long-term liabilities: | ||||||
| Lease liability, net of current | 493,698 | 905,696 | ||||
| Other long-term liabilities | 3,065,357 | - | ||||
| Contract liabilities, net of current | 802,459 | 928,014 | ||||
| Total long-term liabilities | 4,361,514 | 1,833,710 | ||||
| Total liabilities | 10,177,739 | 5,532,500 | ||||
| Commitments and contingencies (Notes 11 and 13) | ||||||
| Shareholders' | ||||||
| equity: | ||||||
| Common stock - $10 par value; |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the company's total long-term liabilities amounted to $4,361,514 as of December 31, 2024. This figure is comprised of several components, including lease liabilities net of current portions, other long-term liabilities, and contract liabilities net of current portions. In comparison, the total long-term liabilities at the end of 2023 were $1,833,710, indicating a significant increase in long-term debt for Engel & Volkers year-over-year.
Specifically, the long-term lease liability, net of the current portion, was $493,698 in 2024, compared to $905,696 in 2023. Other long-term liabilities totaled $3,065,357 in 2024, a notable increase from no reported liabilities in this category in 2023. Contract liabilities, net of current portions, were $802,459 in 2024, a decrease from $928,014 in 2023.
For a prospective Engel & Volkers franchisee, understanding the nature and extent of these long-term liabilities is crucial. It provides insight into the financial obligations and stability of the franchisor. The increase in "Other long-term liabilities" to $3,065,357 in 2024, as detailed in Note 11, is primarily due to the present value of future settlement payments related to a class action lawsuit. This settlement requires Engel & Volkers to make annual installments, with the long-term portion of these payments contributing significantly to the total long-term liabilities. Franchisees should inquire about the details of these liabilities and how they might affect the franchisor's ability to support its franchisees.