What is the full legal name of the company that franchises RE/MAX brokerages globally?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
RE/MAX, LLC and its consolidated subsidiaries (the "Company") is a Delaware limited liability company and a wholly owned subsidiary of RMCO, LLC ("RMCO" or "Member"). RMCO is a subsidiary of RE/MAX Holdings, Inc. ("Holdings"). Holdings completed an initial public offering (the "IPO") of its shares of Class A common stock on October 7, 2013. Holdings' only business is to act as the sole manager of RMCO. As of December 31, 2024, Holdings owns 60.2% of the common membership units in RMCO, while RIHI, Inc. ("RIHI") owns the remaining 39.8%. The Company's distributions to RMCO and RMCO's subsequent distributions to Holdings are largely used to fund Holdings' distributions to its shareholders, including Holdings dividends and repurchases of common shares. Because of the Company's relationship as a wholly owned subsidiary of RMCO, the accompanying consolidated financial statements do not purport to reflect the results of operations and financial position which might have been obtained if the Company were autonomous.
The Company is one of the world's leading franchisors in the real estate industry, franchising real estate brokerages globally under the RE/MAX brand ("RE/MAX") and mortgage brokerages within the United States ("U.S.") under the Motto Mortgage brand ("Motto"). The Company also sells ancillary products and services, including loan processing services to its Motto network and other third parties through the wemlo® brand. The Company focuses on enabling its networks' success by providing quality education, innovative technology products and valuable marketing to build the strength of the RE/MAX and Motto brands.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 RE/MAX Franchise Disclosure Document, RE/MAX, LLC is the company that franchises RE/MAX real estate brokerages globally. RE/MAX, LLC is identified as a Delaware limited liability company. It is a wholly-owned subsidiary of RMCO, LLC, which in turn is a subsidiary of RE/MAX Holdings, Inc.
RE/MAX Holdings, Inc. completed an initial public offering of its Class A common stock on October 7, 2013. As of December 31, 2024, RE/MAX Holdings, Inc. owned 60.2% of the common membership units in RMCO, LLC, while RIHI, Inc. owned the remaining 39.8%. This complex corporate structure means that the financial performance of RE/MAX, LLC is closely tied to the financial obligations of its parent companies.
For a prospective franchisee, this information is crucial for understanding the overall stability and financial health of the RE/MAX franchise system. The franchisee should be aware that RE/MAX, LLC's financial statements are consolidated with those of its parent companies, and its distributions to RMCO, LLC are used to fund RE/MAX Holdings, Inc.'s distributions to its shareholders. This structure could impact the resources available to RE/MAX, LLC for supporting its franchisees.