What was the weighted-average remaining lease term in years for Engel & Volkers' operating lease in 2023?
Engel_Volkers Franchise · 2025 FDDAnswer from 2025 FDD Document
lows:
| Year ending December 31: | Amount |
|---|---|
| 2025 | $ 429,737 |
| 2026 | 429,737 |
| 2027 | 71,623 |
| Net minimum lease payments | 931,097 |
| Less: interest | 25,401 |
| Present value of lease liability | 905,696 |
| Less: current portion | 411,998 |
| Total liability, net of current portion | $ 493,698 |
Supplemental cash flow information related to the lease was as follows:
| | 2024 | 2023 | |---------------------------------
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 88)
What This Means (2025 FDD)
According to Engel & Volkers' 2025 Franchise Disclosure Document, the weighted-average remaining lease term for their operating lease in 2023 was 3.16 years. This figure represents the average time left on the lease agreement, considering the relative importance or weight of each lease.
For a prospective Engel & Volkers franchisee, understanding the remaining lease term is crucial for financial planning. A longer remaining lease term provides stability and predictability in terms of location and associated costs. Conversely, a shorter lease term may require more frequent negotiations or relocation, potentially leading to increased expenses and business disruption.
The FDD also indicates that the cash paid for the operating lease in both 2024 and 2023 was $429,737, and the weighted-average discount rate for the operating lease was 2.5% for both years. These figures, along with the remaining lease term, provide a comprehensive view of Engel & Volkers' lease obligations and can help franchisees assess the company's financial health and stability.