Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Summary of Significant Accounting Policies

Schedule of deferred revenue for franchise sales and annual dues

	Balance at				Revenue		Balance at
	January 1, 2024		New billings		recognized (a)		December 31, 2024
Franchise sales	$	24,613	$	4,908	$	(8,239)	$	21,282
Annual dues		13,282		31,167		(32,188)		12,261
Other		2,789		18,501		(17,207)		4,083
	$	40,684	$	54,576	$	(57,634)	$	37,626

(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.

Schedule of commissions related to franchise sales

			Additions to
	Balance at		contract cost		Expense		Balance at
	January 1, 2024		for new activity		recognized		December 31, 2024
Capitalized contract costs for commissions	$	4,225	$	1,753	$	(2,425)	$	3,553

Schedule of disaggregated revenue

In the following table, segment revenue is disaggregated by geographical area (in thousands):

	Year Ended
	December 31,
	2024		2023		2022
U.S. Company-Owned Regions	$	131,375	$	138,499	$	157,492
U.S. Independent Regions		6,017		6,439		7,086
Canada Company-Owned Regions		40,693		40,805		42,289
Canada Independent Regions		2,758		2,891		2,857
Global		14,421		12,754		12,163
Fee revenue (a)		195,264		201,388		221,887
Franchise sales and other revenue (b)		18,829		25,794		27,385
Total Real Estate		214,093		227,182		249,272
U.S.		59,335		63,791		69,169
Canada		18,521		19,039		19,993
Global		1,127		1,031		1,157
Total Marketing Funds		78,983		83,861		90,319
Mortgage (c)		14,609		13,993		12,388
Other (c)		—		635		1,407
Total	$	307,685	$	325,671	$	353,386

(a) Fee revenue includes Continuing franchise fees, Annual dues and Broker fees.

(b) Franchise sales and other revenue is derived primarily within the U.S.

(c) Revenue from Mortgage and Other are derived exclusively within the U.S.

Schedule of transaction price allocated to the remaining performance obligations

The following table includes estimated revenue by year, excluding certain other immaterial items, expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period (in thousands):

	2025		2026		2027		2028		2029		Thereafter		Total
Franchise sales	$	6,467	$	5,252	$	3,962	$	2,597	$	1,263	$	1,741	$	21,282
Annual dues		12,261		—		—		—		—		—		12,261
Total	$	18,728	$	5,252	$	3,962	$	2,597	$	1,263	$	1,741	$	33,543

Schedule of reconciliation of cash, both unrestricted and restricted

The following table reconciles the amounts presented for cash, both unrestricted and restricted, in the Consolidated Balance Sheets to the amounts presented in the Consolidated Statements of Cash Flows (in thousands):

	As of December 31,
	2024		2023
Cash and cash equivalents	$	96,619	$	82,623
Restricted cash:
Marketing Funds (a)		17,668		15,640
Settlement Fund (b)		55,000		27,500
Total cash, cash equivalents and restricted cash	$	169,287	$	125,763

(a) All cash held by the Marketing Funds is contractually restricted, pursuant to the applicable franchise agreements.

(b) Represents the net amounts held in the U.S. Settlement Fund as part of the settlement of certain industry class-action lawsuits. See Note 13, Commitments and Contingencies, for additional information.

Schedule of cost charges to intersegment

Costs charged from Real Estate to the Marketing Funds are as follows (in thousands):

	Year Ended
	December 31,
	2024		2023		2022
Technology − operating	$	4,397	$	4,676	$	14,436
Technology − capital(a)		—		(203)		918
Marketing staff and administrative services		5,970		6,102		5,598
Total	$	10,367	$	10,575	$	20,952

(a) During the years ended 2023 and 2022, the Company determined that certain development projects were no longer needed and therefore $0.2 million and $0.5 million, respectively, reflecting the cost of work in process assets that would no longer be placed in service, was refunded to the marketing funds.

Schedule of allowances against accounts and notes receivable

The activity in the Company’s allowances against accounts and notes receivable consists of the following (in thousands):

	Balance at beginning of period		Charges to expense for changes in Allowance for doubtful accounts (a)		Write-offs		Balance at end of period
Year Ended December 31, 2024	$	10,900	$	1,359	$	(1,051)	$	11,208
Year Ended December 31, 2023	$	9,111	$	6,784	$	(4,995)	$	10,900
Year Ended December 31, 2022	$	9,564	$	2,581	$	(3,034)	$	9,111

(a) Includes approximately $0.4 million, $1.8 million and $0.4 million of expense attributable to the Marketing Funds for the years ended December 31, 2024, 2023 and 2022, respectively.