What was the total value of Remax's accounts payable as of December 31, 2023?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Denver, Colorado March 30, 2023
(A Wholly Owned Subsidiary of RMCO, LLC) Consolidated Balance Sheets (in thousands)
| As of December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 93,434 | $ | 79,173 | |
| Restricted cash | 72,668 | 43,140 | ||
| Accounts and notes receivable, current portion, net | 27,971 | 34,410 | ||
| Income taxes receivable | 470 | 826 | ||
| Other current assets | 13,115 | 14,901 | ||
| Total current assets | 207,658 | 172,450 | ||
| Property and equipment, net | 7,578 | 8,633 | ||
| Operating lease right of use assets | 17,778 | 23,013 | ||
| Franchise agreements, net | 81,186 | 101,516 | ||
| Other intangible assets, net | 13, |
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the company's accounts payable as of December 31, 2023, totaled $4,512. This figure represents the amount Remax owed to its suppliers and other creditors at that specific point in time. Accounts payable are short-term liabilities, typically due within a year.
For a prospective Remax franchisee, understanding the franchisor's accounts payable can provide insights into its financial health and stability. A high accounts payable balance relative to its assets or revenues could indicate potential cash flow issues or difficulties in meeting its short-term obligations. Conversely, a low balance might suggest efficient financial management and strong relationships with its suppliers.
It's important to note that accounts payable is just one aspect of a company's overall financial picture. A prospective franchisee should review the entire financial statement, including the balance sheet, income statement, and cash flow statement, to gain a comprehensive understanding of Remax's financial condition. Additionally, it would be prudent to compare these figures with industry benchmarks and the financial performance of other franchisees within the Remax system to assess the relative strength and stability of the franchise opportunity.