What are the estimated costs for technology and computer systems for a Remax franchise in Item 7, and how do these costs relate to the franchisee's obligations regarding using and maintaining these systems as outlined in Item 9?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
es 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.
8 You or a principal owner must attend and complete the mandatory 4 day (approximately) initial education program ("Initial Education**" or** "Initial Education Program") in person at REMAX, LLC's headquarters in Denver, Colorado. You may send one or more people from the Office free of charge to the Initial Education Program although you will be responsible for all travel, meal, lodging, and entertainment expenses you or anyone else from the Office incurs to attend the Initial Education Program.
You or your principal owner will also be required to take a 4-day Recruiting 101 education course which must be taken within 12 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.
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Item 7 discusses the estimated initial investment for a Remax franchise, noting that franchisees must install and maintain a computer system with compatible hardware, networking, and software. The costs for these systems, along with high-speed internet and email access, can vary significantly based on quality, automation requirements, and whether the items are purchased or leased. Item 7 also mentions the cost to obtain QuickBooks Online by Intuit, which is needed to use BoldTrail Back Office Software. Item 11 provides more detailed information on brokerage back-office management software and protection services and systems. The estimated cost to acquire a compliant Computer System is between $800 and $2,500. Additionally, franchisees may incur costs for upgrading Microsoft Windows software or comparable operating systems, potentially ranging from $140 to $690 per year per license.
Item 11 further elaborates on the franchisee's obligations to maintain and upgrade their computer systems. Remax or RE/MAX, LLC may modify specifications for any components of the Computer System and related hardware and/or software. Franchisees are required to upgrade or update such hardware and software throughout the term of the Franchise Agreement as specified, and they must cover the costs of implementing these systems, programs, and procedures, including purchasing or leasing hardware and software. Franchisees are also responsible for securing their Computer System, protecting it from viruses and other threats, and complying with privacy and data security laws. This includes installing and continually updating various software and security measures.
Prospective Remax franchisees should carefully consider these ongoing technology costs and obligations. The FDD highlights that there are no contractual limitations on the frequency and cost of required software upgrades. Franchisees should also factor in potential maintenance costs, which can range from $75 to $500 per month ($900 to $6,000 per year) for 1 to 5 hours of third-party maintenance services per month for one Computer System. Given the reliance on technology for communication, data reporting, and back-office management, maintaining a secure and up-to-date computer system is crucial for the successful operation of a Remax franchise.