What was the total capitalized software amount for Engel & Volkers as of December 31, 2024?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Office equipment | $ 368,454 | $ 352,302 |
| Furniture and fixtures | 570,782 | 564,144 |
| Leasehold improvements | 935,553 | 935,553 |
| 1,874,789 | 1,851,999 | |
| Less: accumulated depreciation and | 1,494,803 | 1,310,118 |
| amortization | ||
| Property and equipment, net | $ 379,986 | $ 541,881 |
Depreciation and amortization expense was $184,686, $216,708 and $144,300 for the years e
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers's 2025 Franchise Disclosure Document, the total capitalized software as of December 31, 2024, was $6,201,324. This figure represents the initial cost of the software assets that Engel & Volkers owns and uses in its operations. These assets are expected to provide future economic benefits to the company over several years.
Capitalized software is an asset on Engel & Volkers's balance sheet, meaning it's something the company owns. However, the value of capitalized software typically decreases over time due to amortization. Amortization is the systematic allocation of the cost of an intangible asset over its useful life. The accumulated amortization, which represents the total amount of amortization expense recognized to date, was $3,061,001 as of December 31, 2024.
The net capitalized software, which is the difference between the capitalized software and the accumulated amortization, was $3,140,323 as of December 31, 2024. This net figure represents the book value of the software assets on Engel & Volkers's balance sheet. Prospective franchisees may want to inquire about the specific software included in this amount and how it benefits their operations.