RE/MAX
Date of Incorporation: 1974
Franchising Since: 1974
Headquarters: Denver, Coloradoç Country: U.S.
Business Description: The franchisor, RE/MAX International, is engaged in the business of developing a network of affiliated real estate brokerage offices throughout the United States, Canada and elsewhere. These offices offer high quality real estate services to the general public under the name "RE/MAX."
Franchise Offer: The franchise offered is for the operation of a RE/MAX real estate sales office, which offers a variety of real estate services to the general public. Prospective franchisees, renewing franchisees, and transferees must meet the then current subjective and objective standards for new franchisees, including those related to relevant experience, education and licensing, background and past record of compliance with laws, financial capacity, skills, integrity and other qualities of character. The franchisor may grant existing franchisees that are in need of additional office space to accommodate sales associates, the right to establish one or more additional office locations called a satellite office.
Training and Assistance: Before the opening date of the franchisee’s Office, the franchisee or the principal owner will be provided with a mandatory four-day training program at International's headquarters in Colorado. The franchisee or principal owner is not required to achieve a stated level of performance in the training program. This training program is held on a monthly basis. The franchisee will be permitted to send one or more people from the Office free of charge to the training program, although the franchisee will be responsible for all travel, meal, lodging, and entertainment expenses you or anyone else from the Office incurs while attending the training program. The franchisee will be required to complete training before the Office is scheduled to open.
Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that we control. The franchisee is granted the right to operate the Office at a specific address-only location that first must be approved by RE/MAX. RE/MAX Regional and International may establish other franchised or company owned outlets that may compete with the franchisee’s location. The franchisee may not relocate the Office without prior written consent from RE/MAX.
Term of Agreement and Renewal: The length of the franchise term is five years. If the franchisee meets the requirements for renewal, the franchisee can renew by executing the form of franchise agreement used at the time of renewal for an additional term of five years.
Obligations and Restrictions: The franchisee will not be permitted to engage in any other real estate business or other business or enterprise that may be in competition with RE/MAX International or RE/MAX Regional. Neither the franchisee nor the owners, if you are a business entity, will be required to participate personally in the direct operation of the Office, although RE/MAX recommends that you or a principal owner do so, in which event you or the principal owner must at all times hold a valid real estate broker license. The franchisee is not limited by RE/MAX to listing or selling property or representing clients or customers within any defined geographic area.
Total Number of Units: More than 6,300 units worldwide.
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $20,000 | $20,000 |
| Office set-up/Improvements | $3,500 | $30,000 |
| Exterior Office Signage | $500 | $4,000 |
| Furniture, Fixtures, and Equipment | $1,500 | $25,000 |
| Inventory and supplies | $500 | $3,000 |
| Training fees and expenses | $500 | $2,000 |
| Miscellaneous opening costs | $1,000 | $10,000 |
| Additional funds – 3 months | $5,000 | $30,000 |
| TOTAL ESTIMATED INITIAL INVESTMENT | $32,500 | $124,000 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
|
Monthly Ongoing Fees |
Component One Continuing Franchise Fee: $100 per month for each Sales Associate; Component Two Continuing Franchise Fee: an amount equal to 2.5% of gross commissions received by Office (minimum of $2,500 annually) |
|
Annual Dues |
$165 for each sales associate in the office |
| Regional Group Advertising Fund | $105 per month for each sales associate in the office |
| Regional Development Fund Fee | $275 per month |
| Transfer | $2,500 plus escrow of amounts necessary to cover the franchisor's costs |
| Consultation | $300 per day plus expenses |
| Renewal | $10,000 |
| Product Purchases | Varies |
| Audit | Cost of inspection or audit |
| Interest and Late charges | 20% of amount owed (or maximum amount allowed by law) plus interest at a lesser of 1.5% per month or highest rate allowed by law |
| Costs and Attorney's Fees | Vary under circumstances |
| Indemnification | Vary under circumstances |
| Conventions and Seminars | $195 - $800 registration fee per person |
| Training | $0 |
| Broker/Owner Conferences, meetings and retreats | $0 -$100 registration fee |
| Educational courses | $50 - $150 |
Date of FDD: 2010.
The above information has been compiled from the FDD of RE/MAX along with online sources
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