What were the total 'point in time' revenues for Engel & Volkers in 2022?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
e Company's ability to collect on its contracts. The Company disaggregates revenues from contracts with customers by the timing of revenue recognition by type of revenue, as it believes this best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Revenues by timing of recognition were as follows during the years ended December 31, 2024, 2023 and 2022:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Poin |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the total 'point in time' revenues for the company in 2022 were $28,266,911. These revenues are derived from franchise royalties, marketing and brand advisor fees, and fees from other services. Franchise royalties accounted for $19,192,223 of the total, while marketing and brand advisor fees contributed $6,257,898, and fees from other services added $2,816,790.
'Point in time' revenue recognition is a method of accounting where revenue is recognized when the service is fully performed or the goods are transferred to the customer. For Engel & Volkers, this likely means that these revenues are recognized at the moment a real estate transaction closes or when marketing services are completed. This contrasts with 'over time' revenue, which is recognized gradually as services are provided continuously.
Understanding the composition of Engel & Volkers' revenue streams can be valuable for prospective franchisees. Franchise royalties, being the largest component, indicate the importance of ongoing sales activity within the franchise network. Marketing and brand advisor fees highlight the value of the support services provided by the franchisor. Fees from other services could include training, technology support, or other ancillary offerings. Reviewing these figures over multiple years, as presented in the FDD, can reveal trends and provide insights into the stability and growth of the Engel & Volkers business model.