Are the financial statements of the Remax Marketing Fund distributed to franchisees?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
fund national and pan-regional creative development and media purchases.
REMAX, LLC primarily develops the strategy and implementation for brand campaigns with oversight and input from REMAX, LLC senior management. The source of REMAX, LLC's marketing materials is REMAX, LLC's in-house marketing department and regional and national advertising agencies.
The Marketing Fund is a subsidiary of REMAX, LLC, which is audited annually, but the Marketing Fund is not audited separately. The financial statements are not distributed to franchisees; however, upon written request, REMAX, LLC may make certain financial information available for your review. It is possible that not all of the funds that are contributed to the Marketing Fund will be spent that year. Excess funds that have not been spent by the end of any given fiscal year will be carried over to the next year until these excess funds are spent for the marketing, promotional, and technology purposes (but excluding administrative costs) described above. All Marketing Fund and Hot Air Balloon fund contributions become the non-refundable property of the Marketing Fund. All monies collected and disbursed by the Marketing Fund, including any interest, dividends, capital gains or other income earned on these monies, will be accounted for separately from REMAX, LLC's other funds. A portion of your annual contributions to the Marketing Fund and Hot Air Balloon Fund will be used to pay administrative expenses reasonably related to the direction and implementation of the Funds' purposes described above. As part of administrative expenses, the Fund pays REMAX, LLC amounts equivalent to salaries, travel, rent and other expenses we incur in administering the Fund.
Franchisees are not required to participate in local or regional advertising cooperatives.
During the fiscal year ending December 31, 2024 a total of $57,117,298 was disbursed by the Marketing Fund. 8.8% was spent on production, 58% was spent on media placement, 26.4% was spent on technology related services including development and maintenance (described above), and 6.8% was spent on administrative expenses.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–71)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the financial statements of the Marketing Fund are not distributed to franchisees. However, upon written request, Remax may make certain financial information available for review.
The Marketing Fund is a subsidiary of Remax, LLC, and while it is not audited separately, Remax, LLC undergoes an annual audit. The FDD specifies that during the fiscal year ending December 31, 2024, the Marketing Fund disbursed a total of $57,117,298. Of this amount, 8.8% was allocated to production, 58% to media placement, 26.4% to technology-related services, and 6.8% to administrative expenses.
Excess funds not spent in a given fiscal year are carried over to the next for marketing, promotional, and technology purposes, excluding administrative costs. All contributions to the Marketing Fund and Hot Air Balloon fund become the non-refundable property of the Marketing Fund. Monies collected and disbursed by the Marketing Fund are accounted for separately from Remax, LLC's other funds. A portion of franchisee contributions are used to cover administrative expenses, including salaries, travel, and rent incurred by Remax, LLC in administering the Fund.
Prospective franchisees should be aware that while full financial statements are not automatically provided, they can request certain financial information in writing from Remax. Understanding how the Marketing Fund is managed and allocated is crucial, and franchisees should consider requesting this information to gain insight into the fund's operations.