What is required of management in the preparation of financial statements in conformity with U.S. GAAP at Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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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. In the opinion of management, the accompanying financial statements reflect all normal and recurring adjustments necessary to present fairly the Company's financial position as of December 31, 2024 and 2023, the results of its operations and comprehensive income (loss), changes in its member's equity and its cash flows for the years ended December 31, 2024, 2023 and 2022.
Use of Estimates
The preparation of the accompanying financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the company's financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). This includes the accounts of RE/MAX, LLC and its consolidated subsidiaries, with all significant intercompany accounts and transactions eliminated.
Remax's management believes that these financial statements accurately reflect the company's financial position as of December 31, 2024 and 2023. This encompasses the results of its operations, comprehensive income (loss), changes in member's equity, and cash flows for the years ending December 31, 2024, 2023, and 2022. These statements include all normal and recurring adjustments considered necessary to present the company's financial status fairly.
The preparation of these financial statements requires Remax's management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Management also evaluated company activity through March 28, 2025, the date the financial statements were issued, and concluded that no subsequent events have occurred that would require recognition or disclosure in the financial statements, except as disclosed in Note 11, Commitments and Contingencies.