What are the estimated costs for office supplies and equipment for a Remax franchise in Item 7, and how do these costs relate to the restrictions on sources of products and services as outlined in Item 8?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
**5**Your Office must be staffed by at least one full-time person and equipped with furniture and other miscellaneous office equipment necessary to conduct a real estate brokerage business. The costs you incur may vary significantly and will depend, in large part, on whether you are converting an existing real estate office which already has much of the furniture and fixtures you will need or you are starting a new office, whether you lease or finance your furniture and fixtures or purchase them outright, and the size of your office. If you are starting a new office, and purchase your furniture and fixtures outright, or if your office is larger than 1,000 square feet, your initial outlay may be considerably higher than the upper range listed in the table. (See footnotes 11 and 12 for more detail.)
**6**You must install and maintain at the Office a computer system with hardware, networking and software that is compatible with REMAX, LLC's communication and data reporting requirements, as well as high-speed Internet and email access. Costs for computer hardware, networking, software, and other office equipment can vary significantly, depending on the quality you choose, the automation requirements of your Office, and whether you purchase or lease. If you or someone you employ does not have the expertise, you will need to obtain a maintenance contract with a reputable organization for your Computer System and related equipment. This estimate also includes the cost to obtain QuickBooks Online by Intuit ("QuickBooks"), needed to use BoldTrail Back Office Software or alternatively, if you are a renewing franchisee that will not be using BoldTrail Back Office Software, to obtain brokerage back-office management software that has capabilities compatible with REMAX, LLC's communications and data reporting requirements. See Item 11 for detailed information pertaining to brokerage back-office management software and protection services and systems.
7 This category covers various supplies you will need prior to opening the real estate brokerage business, including such items as business cards, for sale signs, stationery, postage, and the like.
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Item 7 provides estimated initial investment costs, including those for office supplies and equipment. Footnote 5 indicates that the cost of furniture and other miscellaneous office equipment depends on whether the franchisee is converting an existing real estate office or starting a new one, and whether they lease or purchase the items. Footnote 6 specifies that franchisees must install a compatible computer system with hardware, networking, and software, along with high-speed internet and email access. The costs for these can vary based on quality and automation requirements. Footnote 7 states that the category of office supplies includes items such as business cards, for sale signs, stationery, and postage.
Item 8 outlines restrictions on sources of products and services. As of the issuance date of the FDD, franchisees are not required to purchase, lease, or license goods, services, supplies, fixtures, equipment, computer hardware, or software from Remax, LLC, RE/MAX Regional, or a designated supplier. However, RE/MAX Regional reserves the right to mandate exclusive purchases from them or designate specific suppliers in the future. If items like exterior real estate office signs, yard signs, stationery, and business cards meet the standards in the Brand Standards Manual, they do not need to be purchased from approved suppliers, although Remax, LLC maintains a list of approved suppliers.
Remax, LLC evaluates suppliers based on criteria such as their time in business, financial resources, and ability to meet minimum standards for delivery, performance, appearance, and quality. Approved supplier status can be revoked if the supplier breaches their agreement with Remax, LLC. Remax, LLC may also limit the number of approved suppliers offering similar products or services. The cost of products or services required to be purchased or leased from designated or approved sources, or according to Remax, LLC's specifications, represents 10% to 25% of the franchisee's total purchases or leases in establishing and operating the office. These percentages can vary based on factors like the office's location, whether it is a conversion, the number of sales associates, and the franchisee's preferences for furnishing and decorating the premises.
For a prospective Remax franchisee, this means that the initial investment for office supplies and equipment can vary widely based on several factors. While there are currently no mandatory suppliers for many items, Remax reserves the right to implement such requirements in the future. Franchisees should carefully consider their options for purchasing or leasing equipment and supplies, keeping in mind the potential for future restrictions and the importance of adhering to brand standards.