What is Holdings' only business, in relation to Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, RE/MAX Holdings, Inc. (Holdings) has a specific and limited role within the Remax organizational structure. Holdings' sole business function is to act as the sole manager of RMCO, LLC. As of December 31, 2024, Holdings owns 60.2% of the common membership units in RMCO, while RIHI, Inc. owns the remaining 39.8%.
This means that Holdings' primary responsibility is to oversee the management of RMCO, which is the parent company of RE/MAX, LLC. The funds that RE/MAX, LLC distributes to RMCO are then distributed to Holdings, which Holdings then uses to fund distributions to its shareholders, including dividends and repurchases of common shares.
For a prospective Remax franchisee, this information provides insight into the financial structure and relationships within the Remax organization. It clarifies how profits from the franchise operations ultimately flow to the parent company and its shareholders. Understanding this structure can help franchisees assess the financial stability and long-term investment potential of the Remax franchise.