What is the estimated cost range for insurance for a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
2 months of opening the Office ("Recruiting 101"), which will be offered at various times throughout the year. You will be responsible for the course fee ($599 per person that you send from your Office).
You will also be responsible for all travel, meal, lodging, and entertainment expenses you or anyone else from the Office incurs.
9 You must obtain and maintain certain types and amounts of insurance (see Item 8). Insurance costs may depend on such factors as: policy limits, types of policies, nature and value of physical assets, gross revenue, number of Sales Associates, square footage, geographic location of the office, business contents, your coverage history, and other factors bearing on risk exposure. Your actual cost may be higher or lower than this range and may depend on such things as the location of your Office (insurance premiums may vary by state), your claim history, or if you purchase more than the minimum coverage required under the Franchise Agreement.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 43–47)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the estimated initial investment for insurance ranges from $2,000 to $6,000. This cost is paid to third-party providers or rated carriers before opening the franchise.
The FDD notes that the actual cost of insurance may vary based on several factors. These include policy limits, the types of policies secured, the value of physical assets, gross revenue, the number of sales associates, the office's square footage, and its geographic location. Other factors impacting the cost are the contents of the business, coverage history, and other elements affecting risk exposure.
The document also specifies that cyber insurance costs can fluctuate depending on the information technology controls implemented, such as data encryption and multi-factor authentication. Therefore, franchisees should consider these variables when budgeting for insurance to ensure they obtain adequate coverage while managing costs effectively. Franchisees should also be aware that insurance premiums may vary by state and claim history, and purchasing more than the minimum coverage will also affect the cost.