What was the total value of Remax's restricted cash as of December 31, 2024?
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 reasonablenes
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the company's restricted cash totaled $72,668 as of December 31, 2024. In comparison, the restricted cash totaled $43,140 as of December 31, 2023.
Restricted cash, unlike regular cash and cash equivalents, is designated for a specific purpose and is not readily available for general use by the company. This could be due to legal or contractual requirements, such as collateral for a loan or a regulatory reserve requirement.
For a prospective Remax franchisee, understanding the nature and purpose of this restricted cash is important. It provides insight into the financial obligations and commitments Remax has, which could indirectly affect the franchise system's stability and the resources available for franchisee support and development. Franchisees may want to inquire about the specific reasons for the restricted cash and how it impacts Remax's financial operations.