What was the total revenue recognized by Remax from franchise sales, annual dues, and other sources in 2024?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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(a) Revenue recognized related to the beginning balance for Franchise Sales and Annual Dues was $7.9 million and $12.5 million, respectfully, for the year ended December 31, 2024.
(A Wholly Owned Subsidiary of RMCO, LLC) Notes to Financial Statements December 31, 2024 and 2023
Commissions paid on Franchise sales are recognized as an asset and amortized over the contract life of the franchise agreement. The activity in the Company's capitalized contract costs for commissions (which are included in "Other current assets" and "Other assets, net of current portion" on the Consolidated Balance Sheets) consist of the following (in thousands):
| Balance at | contract cost | Expense | Balance at |
|---|
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the company recognized specific revenues related to franchise sales, annual dues, and other sources during the year ending December 31, 2024. The revenue recognized from the beginning balance for Franchise Sales was $7.9 million, and for Annual Dues, it was $12.5 million.
Additionally, the document provides a table outlining the deferred revenue activity for franchise sales, annual dues, and other revenue streams. For franchise sales, the revenue recognized was ($8,239), for annual dues it was ($32,188), and for other revenue, it was ($17,207). These figures represent the amounts recognized from new billings and the balance at the beginning of the year.
In total, Remax recognized $8,239,000 from franchise sales, $32,188,000 from annual dues, and $17,207,000 from other sources during 2024. These revenues are recognized over time, aligning with the contractual terms of the franchise agreements and the services provided by Remax. Understanding these revenue recognition patterns is crucial for prospective franchisees to assess the financial stability and revenue streams of the Remax franchise system.