For Remax franchises, what does 'Reacquired by Franchisor' mean in the context of Table No. 3?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Column 2 Year | Column 3 Outlets at Start of Year | Column 4 Outlets Opened | Terminations | Column 6 Non- renewals | Reacquired by Franchisor | Ceased Operations - Other Reasons | Outlets at the End of the Year |
|---|---|---|---|---|---|---|---|---|
| Montana | 2022 | 16 | 0 | 0 | 0 | 0 | 0 | 16 |
| 2023 | 16 | 2 | 0 | 2 | 0 | 1 | 15 | |
| 2024 | 15 | 2 | 0 | 0 | 0 | 1 | 15 | |
| Nebraska | 2022 | 12 | 0 | 0 | 0 | 0 | 1 | 11 |
| 2023 | 11 | 0 | 0 | 0 | 0 | 2 | 9 | |
| 2024 | 9 | 0 | 0 | 0 | 0 | 0 | 9 | |
| Nevada | 2022 | 31 | 0 | 0 | 1 | 0 | 1 | 29 |
| 2023 | 29 | 1 | 1 | 1 | 0 | 0 | 28 | |
| 2024 | 28 | 0 | 2 | 0 | 0 | 0 | 27 | |
| New | 2022 | 33 | 1 | 0 | 1 | 0 | 1 | 32 |
| Hampshire | ||||||||
| 2023 | 32 | 3 | 5 | 1 | 0 | 0 | 29 | |
| 2024 | 29 | 2 | 0 | 2 | 0 | 2 | 27 | |
| New Jersey | 2022 | 167 | 5 | 0 | 4 | 0 | 3 | 165 |
| 2023 | 165 | 8 | 6 | 5 | 0 | 8 | 154 | |
| 2024 | 154 | 7 | 7 | 6 | 0 | 8 | 138 | |
| New Mexico | 2022 | 23 | 1 | 0 | 1 | 0 | 2 | 21 |
| 2023 | 21 | 1 | 0 | 0 | 0 | 0 | 22 | |
| 2024 | 22 | 2 | 1 | 0 | 0 | 1 | 22 | |
| New York | 2022 | 68 | 7 | 0 | 3 | 0 | 2 | 70 |
| 2023 | 70 | 9 | 3 | 2 | 0 | 0 | 74 | |
| 2024 | 74 | 8 | 2 | 0 | 0 | 7 | 73 | |
| North Carolina | 2022 | 104 | 4 | 0 | 4 | 0 | 4 | 100 |
| 2023 | 100 | 9 | 4 | 5 | 0 | 5 | 95 | |
| 2024 | 95 | 1 | 2 | 6 | 0 | 1 | 87 | |
| North Dakota | 2022 | 10 | 0 | 0 | 0 | 0 | 0 | 10 |
| 2023 | 10 | 0 | 0 | 0 | 0 | 0 | 10 | |
| 2024 | 10 | 0 | 0 | 0 | 0 | 3 | 7 | |
| Ohio | 2022 | 144 | 9 | 2 | 6 | 0 | 0 | 145 |
| 2023 | 145 | 10 | 6 | 5 | 0 | 1 | 144 | |
| 2024 | 144 | 3 | 3 | 2 | 0 | 4 | 140 | |
| Oklahoma | 2022 | 36 | 0 | 0 | 0 | 0 | 2 | 34 |
| 2023 | 34 | 0 | 0 | 1 | 0 | 3 | 29 | |
| 2024 | 29 | 2 | 0 | 2 | 0 | 0 | 29 | |
| Oregon | 2022 | 44 | 5 | 3 | 2 | 0 | 2 | 42 |
| 2023 | 42 | 1 | 1 | 0 | 0 | 1 | 41 | |
| 2024 | 41 | 1 | 1 | 1 | 0 | 1 | 39 | |
| Pennsylvania | 2022 | 171 | 8 | 2 | 7 | 0 | 4 | 166 |
| 2023 | 166 | 5 | 3 | 4 | 0 | 6 | 155 | |
| 2024 | 155 | 8 | 4 | 7 | 0 | 4 | 150 |
Source: Item 20 — **OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–108)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Table No. 3 provides the status of franchised outlets for the years 2022 to 2024. The table includes a column labeled 'Reacquired by Franchisor.' However, the provided excerpts from the FDD do not define or explain what 'Reacquired by Franchisor' specifically means in the context of Remax franchises. The table shows the number of franchised outlets that were reacquired by Remax during the reporting period.
Without a clear definition in the FDD, it is difficult to determine the exact circumstances under which Remax might reacquire a franchised outlet. It could involve Remax purchasing the franchise back from the franchisee, taking control of the outlet due to a default by the franchisee, or other scenarios where ownership reverts to Remax. The absence of any numbers in the 'Reacquired by Franchisor' column for any state or year suggests this is not a common occurrence.
As a prospective franchisee, it is essential to understand the conditions under which Remax could reacquire a franchised outlet. This information would help you assess the risks and potential outcomes associated with investing in a Remax franchise. You should seek clarification from Remax regarding the specific meaning of 'Reacquired by Franchisor,' the circumstances that could lead to such an event, and the financial implications for both the franchisee and the franchisor.
Understanding this term is crucial for any potential Remax franchisee to fully grasp the possible scenarios that could affect their investment and business operations. Direct communication with the franchisor is recommended to obtain a comprehensive understanding.