What was the total amount of revenue related to Engel & Volkers franchise units not yet opened in 2023?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- REVENUES AND RELATED CONTRACT BALANCES (CONTINUED)**
Contract Balances
The timing of revenue recognition of admission fees and up-front fees from direct and master franchisees result in "Contract liabilities" in the accom
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the revenue related to franchise units not yet opened in 2023 was $425,237. This figure represents revenue specifically attributed to franchise locations that were not operational during that year.
For a prospective franchisee, this information provides insight into the revenue streams Engel & Volkers generates from new franchise locations before they officially open. This could include initial franchise fees, training fees, or other pre-opening services and support provided by the franchisor. Understanding this revenue component can help potential franchisees gauge the overall financial health and revenue diversification of Engel & Volkers.
It's important to note that this revenue is distinct from the revenue generated by already opened and operating franchise units. The FDD also indicates that opened franchise units generated $681,084 in revenue during 2023. Comparing these two figures can give a sense of the relative contribution of new versus established franchises to Engel & Volkers' overall revenue. This information is useful for understanding the growth dynamics within the Engel & Volkers franchise system.