factual

What were the total franchise royalties collected by Engel & Volkers in 2023?

Engel_Volkers Franchise · 2025 FDD

Answer from 2025 FDD Document

| Accumulated other comprehensive loss | | (173,649) | | (32,377) | | | | Total shareholders' | | 16,644,949 | | 20,834,321 | | | | equity | | | | | | | | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 26,822,688 | $ | 26,366,821 | | |

ENGEL & VÖLKERS AMERICAS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022

| | 2024 | 2023 | 2022 | |----------------------------------------------------------------------------

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)

What This Means (2025 FDD)

According to Engel & Volkers's 2025 Franchise Disclosure Document, the total franchise royalties collected in 2023 were $16,941,160. This figure represents the royalties paid by franchisees to Engel & Volkers for the use of their brand name, system, and intellectual property. In addition to franchise royalties, Engel & Volkers also collected $5,689,286 in marketing and brand advisor fees and $440,642 in admission fees during the same year. These revenues are sales-based royalties related to the access of Engel & Volkers's intellectual property under the franchise agreement. These are recognized as franchise sales occur and the royalty and/or marketing fee is deemed collectible.

For a prospective Engel & Volkers franchisee, understanding the royalty structure is crucial. Royalties and marketing fees are calculated as a percentage of the franchisee's gross revenues over the term of the franchise agreement. The $16,941,160 in franchise royalties reflects the overall performance and revenue generation of the Engel & Volkers franchise system in 2023. It's important to note that these royalties are recognized as revenue when franchise sales occur and are deemed collectible by Engel & Volkers.

Analyzing the trend of franchise royalties over the years can provide insights into the stability and growth of the Engel & Volkers franchise system. While 2023 saw $16,941,160 in royalties, 2024 shows $18,466,125 and 2022 shows $19,192,223. Prospective franchisees should consider these figures in conjunction with other financial data and market conditions to assess the potential return on investment and the overall health of the Engel & Volkers franchise opportunity. Understanding how these royalties contribute to the franchisor's revenue streams can also offer transparency into how Engel & Volkers supports its franchisees and invests in the brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.