What was the balance of Remax's annual dues at December 31, 2024?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
s):
| Balance at January 1, 2024 | New billings | Revenue recognized (a) | Balance at December 31, 2024 | |
|---|---|---|---|---|
| Franchise sales | $ 24,613 | $ 4,908 | $ (8,239) | $ 21,282 |
| Annual dues | 13,282 | 31,167 | (32,188) | 12,261 |
| Other | 2,789 | 18,501 | (17,207) | 4,083 |
| $ 40,684 | $ 54,576 | $ (57,634) | $ 37,6 |
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the balance of annual dues at December 31, 2024, was $12,261. This figure represents the remaining deferred revenue from annual dues that Remax had not yet recognized as income by the end of the year.
This deferred revenue arises because Remax collects annual dues from its agents upfront but recognizes the revenue ratably over the 12-month period to which the dues relate. This accounting practice aligns the revenue recognition with the period during which Remax provides the associated services and benefits to its agents.
For a prospective Remax franchisee, this information provides insight into how Remax manages its revenue streams and financial reporting. Understanding the concept of deferred revenue can help franchisees better interpret Remax's financial statements and assess the company's financial health. It also highlights the importance of annual dues as a significant revenue source for Remax.