Where are the expenses associated with Remax's short-term billboard advertisement leases included on the Consolidated Statements of Income (Loss)?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Includes expenses associated with short-term leases of billboard advertisements and is included in "Marketing Funds expenses" on the Consolidated Statements of Income (Loss) for the years ended December 31, 2024, 2023 and 2022.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, expenses from short-term billboard advertisement leases are included within "Marketing Funds expenses" on the Consolidated Statements of Income (Loss). This applies for the years ended December 31, 2024, 2023, and 2022.
For a Remax franchisee, this means that the costs associated with these specific advertising efforts are categorized under the broader umbrella of marketing fund expenditures. The marketing funds are typically used for various promotional activities and advertising campaigns to benefit all franchisees within the Remax system.
Understanding how these expenses are classified can help a prospective franchisee better interpret Remax's financial statements and assess the overall financial health and marketing strategies of the company. It also provides transparency into how marketing funds are utilized, which is a crucial aspect for franchisees contributing to these funds.