What was the total value of Engel & Volkers' office equipment in 2024 before accounting for accumulated depreciation and amortization?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
ble do not bear interest if the direct franchisee remains within the terms of the agreement and stated revenue metric.
As shown in the accompanying consolidated financial statements, the notes receivable balance
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the value of their office equipment in 2024, before considering accumulated depreciation, was $368,454. This figure represents the original cost of the office equipment owned by Engel & Volkers at the end of 2024. Depreciation is a reduction in the value of an asset over time, so this figure reflects the initial investment in these assets.
For a prospective Engel & Volkers franchisee, understanding the value of the franchisor's assets can provide insight into the financial health and stability of the company. While franchisees do not directly own these assets, the franchisor's investment in infrastructure like office equipment can impact the support and resources available to franchisees. A financially sound franchisor is more likely to invest in technology, training, and marketing, which can benefit the entire franchise system.
It's important to note that this figure does not reflect the net value of the office equipment after accounting for depreciation. The net value would be lower, reflecting the wear and tear on the assets over time. However, the gross value provides a clear picture of the initial investment made by Engel & Volkers in its office infrastructure. Franchisees may want to inquire about the franchisor's plans for upgrading or replacing equipment, as this could impact the services and support they receive.