What were the total operating expenses for Engel & Volkers in 2023?
Engel_Volkers Franchise · 2025 FDDAnswer 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 | |
|---|---|---|---|
| Franchise revenues: Franchise royalties Marketing and brand advisor fees Admission fees | $ 18,466,125 6,334,362 399,828 | $ 16,941,160 5,689,286 440,642 | $ 19,192,223 6,257,898 377,715 |
| Total franchise revenues | 25,200,315 | 23,071,088 | 25,827,836 |
| Fees from other services | 2,664,353 | 3,137,569 | 2,816,790 |
| Total revenues | 27,864,668 | 26,208,657 | 28,644,626 |
| Operating expenses: Cost of revenues Selling, general and administrative expenses | 1,252,495 26,034,453 | 1,170,369 22,942,512 | 1,380,832 23,023,016 |
| Total operating expenses | 27,286,948 | 24,112,881 | 24,403,848 |
| Income from operations | 577,720 | 2,095,776 | 4,240,778 |
| Other income (expense): Interest income Interest expense Foreign currency gain (loss) Other income Settlement expense | 112,234 (77,157) (52,249) 316,399 (4,938,200) | 92,839 - (8,297) 356,283 - | 37 (7,075) 75,221 557,888 - |
| Other income (expense), net | (4,638,973) | 440,825 | 626,071 |
| Income (loss) before provision for (benefit from) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the total operating expenses for the company in 2023 were $24,112,881. This figure is comprised of two components: cost of revenues, which amounted to $1,170,369, and selling, general, and administrative expenses, which totaled $22,942,512.
Understanding the components of operating expenses is crucial for prospective franchisees. Cost of revenues typically includes direct costs associated with providing services, while selling, general, and administrative expenses cover a broader range of overhead costs such as salaries, marketing, and office expenses. These expenses are significant as they directly impact the profitability of Engel & Volkers.
For a potential Engel & Volkers franchisee, this information provides a benchmark for evaluating the financial health and operational efficiency of the company. It's important to compare these figures with industry averages and to analyze trends over multiple years to assess the company's financial performance. Furthermore, franchisees should inquire about the specific items included in these expense categories to gain a deeper understanding of where the company's money is being spent and how these expenses might impact their own franchise operations.