What was the balance of Remax's franchise sales at January 1, 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) | $ 21,2 |
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 franchise sales at January 1, 2024, was $24,613. This figure represents the deferred revenue from franchise sales that Remax had not yet recognized as income at the beginning of the year.
This deferred revenue stems from the fees Remax charges for the sale or renewal of franchises. These fees are considered part of the license of symbolic intellectual property and are recognized as revenue over the contractual term of the franchise agreement. For Remax, this period is typically five years.
For a prospective franchisee, this information provides insight into how Remax accounts for its franchise fees and how revenue is recognized over time. It also highlights the importance of understanding the terms of the franchise agreement, as the revenue recognition period directly impacts Remax's financial reporting.