What is the estimated range for additional funds needed for the first 3 months of operating a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
25 |
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Item 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT1
| 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 | #### Explanatory Notes |
1. Unless otherwise noted, all fees listed in this Item 7 are non-refundable.
2 The Initial Franchise Fee is non-refundable. If you finance your Initial Franchise Fee, you will sign a promissory note as described in Item 10. Payments you make to parties other than us or our affiliates may be refundable and/or financed at the option of the other party.
3 If you are starting a new office, you will be required to have at least 1,000 square feet (700 square feet if you are starting a new office in a low-density area) of office space to start and should plan to expand to be able to accommodate the minimum number of Sales Associates you will be required to have by the end of the third year of the Franchise Agreement. The exact size of your Office will depend on the number of Sales Associates you anticipate having under contract and the availability of office space in your area. If you are converting an existing real estate office rather than starting a new office, your initial investment for Office Set-Up/Improvements may be closer to the low end of the range. If you are starting a new office that is 1,000 square feet in size, these costs should typically be in the $15,000 - $70,000 range.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 43–47)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee should anticipate needing between $10,000 and $50,000 in additional funds to cover the first three months of operation. These funds are intended to cover initial start-up expenses beyond those specifically listed in the initial investment table. These expenses typically include payroll, rent or mortgage payments, internet service fees, and other general overhead costs.
The FDD indicates that the actual amount needed can vary significantly based on several factors. These factors include the franchisee's adherence to Remax's operational methods, their management skills, experience, business acumen, and the success of sales associate recruiting efforts. The decision to convert an existing real estate office versus starting a new one also plays a role, as does the size of the facility and staff, local economic conditions, the local market for real estate services, prevailing wage rates, and the level of competition.
Remax estimates that if a franchisee converts an existing office, the additional funds needed will likely be closer to the lower end of the $10,000 to $50,000 range. However, starting a new office will likely require an amount between $15,000 and $50,000. The FDD recommends that prospective franchisees consult with a professional accountant or advisor to discuss cash flow needs and capital budgeting to ensure they are adequately prepared for the initial months of operation.
It is important to note that these figures are estimates, and Remax cannot guarantee that a franchisee will not incur additional expenses. The FDD emphasizes the importance of careful planning and professional financial advice to navigate the uncertainties of starting a new business.