factual

Does Remax grant franchisees an exclusive territory?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You are granted the right to operate the Office at a specific address-only location that first must be approved by REMAX, LLC. You may not relocate the Office without REMAX, LLC's prior written consent. The Franchise Agreement does not give you any right of first refusal, option or any other right to purchase, acquire, or open any additional RE/MAX office franchises, although you may, under certain circumstances, be granted the right to open one or more Team Offices (see discussion below). REMAX, LLC or any of REMAX, LLC's affiliates may establish other franchised or company owned outlets at any location whatsoever, including a location in close proximity to your Office and that may compete with your location. REMAX, LLC retains all rights to develop, locate and operate, and to grant others the right to develop, locate and operate, real estate brokerage offices under another trademark or service mark or any other business under the Marks or under any other trademark or service mark or to engage in any other business activity anywhere even if such RE/MAX office or other office has an adverse impact on your business.

Source: Item 12 — TERRITORY (FDD pages 71–75)

What This Means (2025 FDD)

According to Remax's 2025 Franchise Disclosure Document, Remax franchisees do not receive an exclusive territory. The FDD specifies that franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Remax. The franchisee is only granted the right to operate at a specific address that Remax approves. Relocation of the office is not permitted without Remax's written consent.

This lack of territorial exclusivity means that Remax can establish other franchised or company-owned outlets at any location, even in close proximity to a franchisee's office, which could directly compete with their business. Remax also retains the right to develop and operate real estate brokerage offices under different trademarks or engage in any other business activity, regardless of any adverse impact on a franchisee's business.

While franchisees do not receive an exclusive territory, they may have the opportunity to establish Team Offices under certain circumstances. Permission to establish a Team Office is at Remax Regional's discretion, considering factors like location, population growth, and market share. Establishing a Team Office requires paying a Team Office Initial Fee of $1,000, plus a Monthly Ongoing Team Office fee of $100 per month for each Team Office. Team Offices are "address only" locations and also do not have any protected area or territorial exclusivity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.