How does Remax recognize revenue from event-based education and other programs?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Other revenue is primarily from:
- Event-based revenue from education and other programs, which is recognized when the event occurs and until then amounts collected are included in "Deferred revenue".
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, revenue from event-based education and other programs is recognized when the event occurs. Any amounts collected before the event are recorded as "Deferred revenue" until the event takes place. This accounting practice ensures that Remax recognizes revenue in the period when the service is actually provided.
For a prospective Remax franchisee, this means that if they participate in or host any educational events or programs, the revenue from those events will be recognized at the time the event is held. Any payments received in advance for these events will initially be held as deferred revenue on Remax's balance sheet. This is a standard accounting practice that aligns revenue recognition with the delivery of services.
This policy is important for franchisees to understand as it affects how Remax reports its financial performance. It also ensures transparency in Remax's financial reporting, as it clearly defines when and how revenue from different sources is recognized. Franchisees can use this information to better understand Remax's revenue streams and financial stability.