When does Remax recognize revenue from data service subscriptions?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- Data service subscription revenue, which is recognized when the control of the products or services has transferred to the customer, which may occur at a point in time or over time, depending on the nature of the contract.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, revenue from data service subscriptions is recognized when control of the products or services has transferred to the customer. This recognition may occur either at a specific point in time or over a period, depending on the specifics of the contract with the customer.
For a Remax franchisee, this means that the timing of revenue recognition for data services can vary. If the data service is delivered all at once, revenue is recognized immediately upon delivery. However, if the service is provided continuously over a period, revenue is recognized gradually over that period.
This approach aligns with standard accounting practices, where revenue recognition is tied to the transfer of goods or services to the customer. Franchisees should ensure they understand the terms of their data service contracts to properly account for revenue. Remax also recognizes revenue from other sources such as events, preferred marketing arrangements, technology products and subscriptions, mortgage loan processing, and advertising.