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 which is available for a 24-month period at an annual percentage rate ("APR") of interest equal to 2% over the prime rate (as listed in "The Wall Street Journal") in effect when the promissory note for the initial franchise fee is signed. Those who wish to finance this fee must pay at least 50% in cash as a down payment when the Franchise Agreement is signed. The principal balance of the franchise fee will be due in 24 equal monthly installments plus accrued interest. Except as described above, 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 franchisee’s Office, the franchisee or the principal owner will be provided with a mandatory four-day training program at RE/MAX 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. 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: The franchisee will not receive an exclusive territory except under certain limited circumstances that may apply if the franchisee is renewing an existing franchise relationship with the RE/MAX, LLC. The franchisee is granted the right to operate the Office at a specific address-only location that first must be approved by RE/MAX. The franchisee may not relocate the Office without prior written consent from RE/MAX. The franchisee may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands controlled by RE/MAX, LLC.
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, but the franchisee could be granted up to 10 years is certain criteria are met.
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.
Estimated Number of Units: 6,300
|Name of Fee||Low||High|
|Initial Franchise Fee||$12,500||$28,000|
|Exterior Office Signage||$500||$4,000|
|Furniture, Fixtures, and Equipment||$5,000||$40,000|
|Inventory and supplies||$500||$4,000|
|Training fees and expenses||$1,000||$3,000|
|Miscellaneous opening costs||$2,000||$15,000|
|Additional funds – 3 months||$15,000||$75,000|
|TOTAL ESTIMATED INITIAL INVESTMENT||$40,000||$244,000|
|Name of Fee||Amount|
Monthly Ongoing Fees
|Component One Continuing Franchise Fee: $125 per month for each Sales Associate; Component Two Continuing Franchise Fee: an amount equal to 1% of gross commissions|
|$390 for each sales associate in the office|
|Regional Group Advertising Fund||$101 per month for each sales associate in the office|
|Transfer||$2,500 plus escrow of amounts necessary to cover the franchisor’s costs|
|Consultation||$300 per day plus expenses|
|Renewal||$4,000 - $10,000|
|Audit||Cost of inspection or audit|
|Interest and Late charges||20% of amount owed for the late payment of Annual Dues; 10% of amount owed for all other fees (or maximum amount allowed by law) plus interest at 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|
|Broker/Owner Conferences, meetings and retreats||$0 - $100 registration fee|
|Educational courses||$50 - $150|
Date of FDD: 2011.
The above information has been compiled from the FDD of RE/MAX along with online sources
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