RE/MAX Franchise Cost & Fees

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Description

Year Business Began: 1973Franchising Since: 1975Headquarters: Denver, ColoradoEstimated Number of Units: 7,930Franchise Description: The franchisor, RE/MAX, LLC, is engaged in the business of developing a network of affiliated real estate brokerage offices throughout the United States, Canada and elsewhere. RE/MAX, LLC is formerly known as RE/MAX International, Inc.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. All 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.Training Overview: Franchisees or their principal owner and the Manager, if any, will be provided with a mandatory 4 1/2 day training program at the franchisor’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. Prior to renewal, franchisees may be required to complete the RE/MAX 501: Maximizing Your Office Potential course and/or such other training or courses deemed necessary by the franchisor. Maximizing Your Office Potential is a management refresher course developed to help franchisees adapt to the increasingly complex real estate industry. The franchisor 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 Granted: Franchisees are granted the right to operate the Office at a specific address-only location that first must be approved. 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.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 unless required by local law, although the franchisor 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 or such other state license as may be required to act as the managing or designated broker of record. 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.Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If franchisees meet the requirements for renewal, they will be required to sign a franchise agreement that may contain materially different terms that those of their original franchise agreement.Financial Assistance: A franchisee that is renewing an existing franchise may finance a portion of the Renewal Fee through the franchisor. Other than this assistance, the franchisor does not offer direct or indirect financing, does not guarantee a franchisee’s note, lease or obligation, and does not receive a fee from any financing source. Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $17,500 $37,500 Office Set-Up $3,500 $95,000 Exterior Office Signage $500 $10,000 Furniture, Fixtures, and Equipment $5,000 $40,000 Inventory and Supplies $500 $4,000 Training Fees and Expenses $1,500 $4,000 Miscellaneous Opening Costs $2,000 $19,000 Additional Funds – 3 months $10,000 $75,000 ESTIMATED TOTAL $40,500 $284,500 Other Fees Type of Fee Amount Monthly Ongoing Fee $128 per month for each sales associate in the office. The amount will increase to $130.50 on July 1, 2018. Regional Group Advertising Fund $95 per month for each sales associate in the office. This amount may increase once in a calendar year, but not by more than $30 per month. Broker 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. Annual Dues $410 for each sales associate affiliated with the office. Transfer Fee $2,500 plus any amounts necessary to cover RE/MAX, LLC’s other costs, such as administrative and legal expenses. Renewal Fee $6,000-$12,500 or, if financed, $7,000 to $14,000 Minimum Agent CountMust pay advertising fees and contributions and Annual Dues as if you had met your Minimum Agent Count.Interest and Late ChargesAs liquidated damages and not as a penalty: 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); $100 per day for the failure to timely submit reports; plus interest of 1% per month compounded (or highest rate allowed by law) of amount owed for all fees except Annual Dues.Educational CoursesWill vary under circumstances Conventions and Seminars $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. Product PurchasesVariesInsuranceCost of insuranceAuditCost of inspection or auditCosts and Attorneys’ FeesWill vary under circumstancesIndemnificationWill vary under circumstances Broker/Owner Conferences, Meetings, and Retreats $0-$200 registration fee Lost Future RevenueWill vary under circumstancesHoldover FeeWill vary under circumstances The above information has been compiled from the FDD of RE/MAX and company sources. Year of FDD: 2018Franchise Direct’s Disclaimer