What was the total value of Remax's net franchise agreements as of December 31, 2023?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | 13,382 | 19,167 | ||
| Goodwill | 237,239 | 241,164 | ||
| Other assets, net of current portion | 5,565 | 7,083 | ||
| Total assets | $ 570,386 | $ | 573,026 | |
| Liabilities and member's equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ 5,674 | $ | 4,512 | |
| Accrued liabilities | 110,654 | 107,324 | ||
| Income taxes payable | 541 | 766 | ||
| Deferred revenue | 22,848 | 23,077 | ||
| Current portion of debt | 4,600 | 4,600 | ||
| Operating lease liabilities | 8,556 | 7,920 | ||
| Total current liabilities | 152,873 | 148,199 | ||
| Debt, net of current portion | 436,243 | 439,980 | ||
| Deferred tax liabilities, net | 8,448 |
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the document does not explicitly state the total value of net franchise agreements as of December 31, 2023. However, the FDD does include revenue information for the year ended December 31, 2023. This includes several categories of revenue related to franchise operations.
Specifically, for the year ended December 31, 2023, Remax reported $127,384 in continuing franchise fees, $33,904 in annual dues, $51,012 in broker fees, $83,861 in marketing funds fees, and $29,510 in franchise sales and other revenue. The total revenue for that year was $325,671. These figures represent the income Remax received from its franchise operations, but not the overall value of the franchise agreements themselves.
A prospective franchisee should note that while the FDD provides detailed revenue and expense information, it does not offer a valuation of the franchise agreements. To gain a better understanding of the value of these agreements, it would be prudent to ask Remax for additional information on how they assess the financial value of their franchise agreements and what factors contribute to this valuation. This information could be crucial in assessing the overall financial health and potential return on investment of a Remax franchise.