RE/MAX Franchise Cost & Fees
Date of Incorporation: 1974
Franchising Since: 1974
Headquarters: Denver, Colorado
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.
Financial Assistance: RE/MAX, LLC offers financing to franchisees for the initial franchise fee or the renewal fee for existing franchisees. Other than this assistance, RE/MAX, LLC does not offer direct or indirect financing. RE/MAX does not receive direct or indirect payments for placing financing, nor does RE/MAX, LLC guarantee your note, lease or obligation.
Training and Assistance: Before the opening date of the Office, franchisees or their principal owner and the Manager, if any, will be provided with a mandatory four and one-half day training program at RE/MAX, LLC's headquarters in Colorado. Franchisees or their principal owner and the Manager, if any, must attend and complete the training, although achievement of a stated level of performance is not required. Maximizing Your Office Potential is a management refresher course developed to help franchisees adapt to the increasingly complex real estate industry. It covers such topics as fiscal management, office operations, and recruiting and retention; from time to time, additional segments may be added. RE/MAX, LLC conducts an annual convention and may periodically conduct training conferences designed to build the RE/MAX image, assist franchisees in recruiting potential Sales Associates and provide an international forum for exchanging ideas on managing and operating RE/MAX offices. Attendance is optional for these events.
Territory: Franchisees will not receive an exclusive territory or any other type of territorial protection. Franchisees may face competition from other franchisees, from outlets that the franchisor may come to control, from franchises in other channels of distribution that the franchisor operates, or from additional channels of distribution or competitive brands that the franchisor may come to own or control.
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: Neither the franchisee nor the owners, if a business entity, will be required to participate personally in the direct operation of the Office, although RE/MAX, LLC recommends that the franchisee or a principal owner do so, in which event the franchisee or the principal owner will be required to at all times hold a valid real estate broker license. If the franchisee or a principal owner does not directly supervise the Office or have a valid real estate broker license, the franchisee will be required to secure the services of a validly licensed real estate broker under whose license the Office will be conducted and who will be responsible for the management of the Office. There are no minimum performance standards, other than attending the full training program that must be satisfied during training. Franchisees will be expected to meet high standards of real estate service and professionalism reflective of the goodwill and respect enjoyed by the RE/MAX name and organization.
Estimated Number of Units: 6,575
|Name of Fee||Low||High|
|Initial Franchise Fee||$10,000||$25,000|
|Exterior Office Signage||$500||$4,000|
|Furniture, Fixtures, and Equipment||$5,000||$40,000|
|Inventory and Supplies||$500||$10,000|
|Training Fees and Expenses||$1,500||$4,000|
|Miscellaneous Opening Costs||$2,000||$15,000|
|Additional Funds – 3 months||$15,000||$50,000|
|Type of Fee||Amount|
|Management Fee||At least $134 per month for each Sales Associate in the office. For subsequent 12-month periods beginning on May 1, 2015 of each year, the amounts are projected to increase slightly.|
|Promotion Fee||At least $131 per month for each Sales Associate in the office. For subsequent 12-month periods beginning on May 1, 2015 of each year, the amounts are projected to increase slightly.|
|Transaction Fee||1% of gross monthly real estate commissions earned by the Office as a result of the efforts of all the Sales Associates' affiliated with the office.|
|Hot Air Balloon Fund||$100 per month.|
|Annual Dues||$400 for each sales associate affiliated with the office.|
|Transfer Fee||$2,500 for transfer of controlling interest (50% or more); $1,000 for a transfer of less than a controlling interest plus legal or administrative costs RE/MAX Regional or RE/MAX, LLC incur in connection with each transfer.|
|Renewal Fee||100% of the initial franchise fee that would ordinarily be payable by a franchisee as of the date of the Franchise Agreement; 50% for early renewals completed at least 6 months prior to expiration of the Franchise Agreement.|
|Quota Deficiency Fee||An amount equal to two times the monthly Management Fee multiplied by the number of Sales Associates by which the office is below the required quota.|
|Late Fees and Late Payment Charges||20% of amount owed plus 1.5% per month, but no higher than the highest rate allowed by law.|
|Document Preparation Fee||$500|
|Educational Courses||Will vary under circumstances.|
|Meetings, Conventions and Other Events||$195-$800 registration fee per person for RE/MAX, LLC's Convention. Nominal fees or charges may also be assessed for a variety of other social functions. Other events will vary under the circumstances.|
|Consultation||Will vary under circumstances.|
|Audit||Cost of inspection or audit.|
|Costs and Attorneys' Fees||Will vary under circumstances.|
|Indemnification||Will vary under circumstances.|
|Broker/Owner Council||$0-$100 annually.|
|Lost Future Revenue||Will vary under circumstances.|
The above information has been taken from the FDD of RE/MAX. Year of FDD: 2014
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