What accounting standards are used in preparing Remax's consolidated financial statements?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying consolidated financial statements ("financial statements") and notes thereto have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and include the accounts of RE/MAX, LLC and its consolidated subsidiaries. All significant intercompany accounts and transactions have been eliminated. In the opinion of management, the accompanying financial statements reflect all normal and recurring adjustments necessary to present fairly the Company's financial position as of December 31, 2024 and 2023, the results of its operations and comprehensive income (loss), changes in its member's equity and its cash flows for the years ended December 31, 2024, 2023 and 2022.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 FDD, Remax prepares its consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP). This means that the company follows a standardized set of rules and guidelines when reporting its financial performance and position. These principles ensure transparency and comparability in financial reporting.
The FDD specifies that the financial statements include the accounts of RE/MAX, LLC and its consolidated subsidiaries, with all significant intercompany accounts and transactions eliminated. This consolidation provides a comprehensive view of the financial health of the entire Remax organization, as it presents the combined results of the parent company and its subsidiaries.
Management believes that the financial statements accurately reflect the company's financial position as of December 31, 2024 and 2023, as well as the results of its operations, comprehensive income (loss), changes in member's equity, and cash flows for the years ended December 31, 2024, 2023 and 2022. This statement indicates that Remax's management team is confident in the fairness and accuracy of the presented financial information, which is crucial for potential investors and franchisees to make informed decisions.