By when must a Remax franchisee accommodate the minimum number of Sales Associates?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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. The actual cost of the office space and improv
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 43–47)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if you are starting a new office, you must plan to expand your office space to accommodate the minimum number of Sales Associates required by the end of the third year of the Franchise Agreement. The FDD specifies that a new office should have at least 1,000 square feet of office space (or 700 square feet in a low-density area) to start.
The exact size of the Remax office will depend on the number of Sales Associates the franchisee anticipates having under contract and the availability of office space in the area. This implies that Remax franchisees need to proactively recruit and manage their Sales Associates to meet the minimum requirements within the given timeframe.
Prospective Remax franchisees should consider the costs associated with expanding their office space to accommodate the minimum number of Sales Associates. These costs can vary significantly based on location, lease terms, and the extent of improvements needed. It is important to factor in these potential expenses when developing a business plan and securing financing.