Are the financial statements for Remax, LLC audited?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
REMAX, LLC guarantees RE/MAX Integrated Regions, LLC's obligations under the Franchise Agreement. Attached to this disclosure document as Exhibit C are the consolidated balance sheets of REMAX, LLC and subsidiaries as of December 31, 2024 and 2023, and the related consolidated statements of income (loss), comprehensive income (loss), member's equity, and cash flows for each of the years in the three-year period ended December 31, 2024. Also attached to this disclosure document as Exhibit C is RE/MAX, LLC's Guarantee of Performance.
(A Wholly Owned Subsidiary of RMCO, LLC)
Consolidated Financial Statements
December 31, 2024 and 2023
(With Independent Auditors' Report Thereon)
Ernst & Young LLP 370 17th Street Suite 4800 Denver, CO 80202 Tel: +1 720 931 4000 Fax: +1 720 931 4444 ey.com
Report of Independent Auditors
The Member RE/MAX, LLC
Opinion
We have audited the consolidated financial statements of RE/MAX, LLC and subsidiaries (the Company), which comprise the consolidated balance sheets as of December 31, 2024 and 2023, and the related consolidated statements of income (loss), comprehensive income (loss), member's equity, and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements").
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 21 — Financial Statements (FDD page 108)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the consolidated financial statements of Remax, LLC and its subsidiaries are indeed audited. The FDD includes the consolidated balance sheets as of December 31, 2024, and 2023, along with related statements of income (loss), comprehensive income (loss), member's equity, and cash flows for the years then ended. These financial statements are accompanied by an independent auditor's report.
The inclusion of audited financial statements is a standard practice in franchising, providing potential franchisees with an added layer of confidence. The audit confirms that the financial statements are presented fairly and in accordance with accounting principles generally accepted in the United States of America. This helps franchisees assess the financial health and stability of Remax.
The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). The auditor's responsibilities include exercising professional judgment, maintaining professional skepticism, identifying risks of material misstatement, understanding internal control, evaluating accounting policies, and assessing the overall presentation of the financial statements. Ernst & Young LLP served as the independent auditor for the financial statements as of December 31, 2024 and 2023, while KPMG LLP audited the financial statements for the year ended December 31, 2022.