What was the balance at January 1, 2023, according to the Remax financial data?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
n (in thousands):
| Balance at January 1, 2023 | $ 4,527 |
|---|---|
| Fair value adjustments | (533) |
| Cash payments | (1,234) |
| Balance at January 1, 2024 | $ 2,760 |
| Fair value adjustments | (225) |
| Cash payments | (360) |
| Balance at December 31, 2024 | $ 2,175 |
The Company assesses categorization of assets and liabilities by level at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer. There were no transfers between Levels I, II and III during the year ended December 31, 2024.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, there are two different balances listed as of January 1, 2023. One balance is listed as $4,527, and the other is listed as $258,626. It is important to note that these balances likely pertain to different financial accounts or categories within Remax's financial statements.
Understanding the nature of these different balances is crucial for prospective franchisees. The $4,527 balance is further adjusted by fair value adjustments of ($533) and cash payments of ($1,234), resulting in a balance of $2,760 at January 1, 2024. The $258,626 balance is impacted by an impairment charge of ($18,633) and the effect of changes in foreign currency exchange rates of $1,171, leading to a balance of $241,164 at December 31, 2023.
Prospective Remax franchisees should seek clarification from Remax regarding the specific accounts these balances represent. Understanding the context of each balance will provide a clearer picture of Remax's financial health and performance. This due diligence is essential for making an informed investment decision.