What was the depreciation and amortization expense for Remax in 2022?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
,565 | | 7,083 | | | Total assets | $ 570,386 | $ | 573,026 | | | Liabilities and member's equity | | | | | | Current liabilities: | | | | | | Accounts payable | $ 5,674 | $ | 4,512 | | | Accrued liabilities | 110,654 | | 107,324 | | | Income taxes payable | 541 | | 766 | | | Deferred revenue | 22,848 | | 23,077 | | | Current portion of debt | 4,600 | | 4,600 | | | Operating lease liabilities | 8,556 | | 7,920 | | | Total current liabilities | 152,873 | | 148,199 | | | Debt, net of current portion | 436,243 | | 439,980 | | | Deferred tax liabilities, net | 8,448 | | 10,797 | | | Deferred revenue, net of current portion | 14,778 | | 17,607 | | | Operating lease liabilities, net of current portion | 22,669 | | 31,479 | | | Other liabilities, net of current portion | 3,148 | | 4,029 | | | Total liabilities | 638,159 | | 652,091 | | | Commitments and contingencies | | | | | | Member's equity: | | | | | | Member's equity | (63,099) | | (78,604) | | | Accumulated other comprehensive income | (4,674) | | (461) | | | Total member's equity | (67,773) | | (79,065) | | | Total liabilities and member's equity | $ 570,386 | $ | 573,026 | |
(A Wholly Owned Subsidiary of RMCO, LLC) Consolidated Statements of Income (Loss) (in thousands)
| Year Ended December 31, | ||||||
|---|---|---|---|---|---|---|
| 2024 2023 | 2022 | |||||
| Revenue: | ||||||
| Continuing franchise fees | $ | 122,011 | $ | 127,384 | $ | 133,389 |
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the depreciation and amortization expense for the year ended December 31, 2022, was $35,742. This figure reflects the accounting expense recognized for the reduction in value of Remax's tangible and intangible assets over that year. Depreciation applies to tangible assets like equipment and buildings, while amortization applies to intangible assets like patents and trademarks.
For a prospective franchisee, understanding depreciation and amortization is crucial for assessing the overall financial health and capital expenditure strategy of Remax. While franchisees do not directly incur these expenses at the corporate level, they reflect the investments Remax makes in its infrastructure and brand, which ultimately support the franchise network. Higher depreciation and amortization expenses might indicate significant investments in updating technology, equipment, or intellectual property, which could benefit franchisees.
It's important to note that this figure is part of the broader financial statements and should be analyzed in conjunction with other expenses and revenue figures to gain a comprehensive understanding of Remax's financial performance. Franchisees may want to inquire about the specific assets being depreciated or amortized to understand the nature of these investments and how they contribute to the Remax system.