What is eliminated in the consolidated financial statements of RE/MAX, LLC?
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.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the consolidated financial statements include the accounts of RE/MAX, LLC and its consolidated subsidiaries. To provide a clear financial picture of the entire Remax organization, all significant intercompany accounts and transactions are eliminated during the consolidation process.
This elimination prevents the artificial inflation of financial figures that could occur if transactions between different parts of the Remax organization were simply added together. For example, if one Remax subsidiary provides services to another, the revenue recorded by the service provider and the expense recorded by the recipient are both removed in the consolidated statements. This ensures that only transactions with outside parties are reflected in the final results.
For a prospective Remax franchisee, this means that the financial statements they review offer a true representation of the company's overall performance, without any distortion from internal financial activities. Understanding this consolidation process helps franchisees to better assess the financial health and stability of the Remax franchise system as a whole.