What is the estimated cost range for licenses, grand opening, utilities, security deposit, and other miscellaneous opening costs for a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|
| Initial franchise fee2 | $17,500 - $37,500 | Lump Sum or Financed2 | Upon Signing Franchise Agreement | RE/MAX, LLC |
| Office set-up/improvements3 | $3,500 - $72,000 | As Agreed | As Incurred | Third Parties |
| Exterior office signage4 | $500 - $10,000 | As Agreed | As Incurred | Third Parties |
| Furniture, fixtures, and equipment5 | $2,000 - $20,000 | Vendor’s terms | As Incurred | Third Parties |
| Computer System6 | $4,000 - $26,000 | Vendor’s terms | As Incurred | Third Parties |
| Inventory and supplies7 | $500 - $4,000 | As Agreed | As Incurred | Third Parties |
| Education fees and expenses8 | $4,000 - $9,000 | Lump Sum | As Incurred | Third Parties |
| Insurance9 | $2,000 - $6,000 | Vendor’s terms | Before Opening | Third Parties / Rated Carriers |
| Licenses, Grand Opening, Utilities, | $1,000 - $11,000 | As Incurred | As Incurred | Third Parties |
| Security Deposit, and other | ||||
| miscellaneous opening costs10 | ||||
| Additional funds - 3 months11 | $10,000 - $50,000 | As Incurred | As Incurred | Third Parties |
| Total12 | $45,000 - $245,500 |
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 licenses, grand opening, utilities, security deposit, and other miscellaneous opening costs ranges from $1,000 to $11,000. These costs cover various opening expenses, including broker and other required licenses, security deposit and first month's rent, advertising (such as a grand opening promotion), legal and accounting expenses, and deposits for gas, electricity, and related utilities.
The actual amount a franchisee spends within this category can vary. Remax notes that costs will depend on whether the franchisee is converting an existing office or starting a new one. Converting an existing office typically results in costs closer to the lower end of the range, while starting a new office usually leads to expenses closer to the higher end.
Prospective Remax franchisees should carefully consider these miscellaneous opening costs when planning their initial investment. It is advisable to discuss these expenses with a business advisor to develop a comprehensive financial plan. Understanding these potential costs is crucial for setting a realistic budget and ensuring sufficient capital for the initial phase of operating a Remax franchise.