How does the initial franchise fee for a Remax franchise (Item 5) relate to the potential for building a long-term and successful career in real estate, considering the ongoing training, support, and resources provided by Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
During calendar year 2024, franchisees paid initial franchise fees ranging from $0 to $17,500 for a franchise in a low-density market and from $0 to $35,000 for a franchise in a high-density market. Discounts to the initial franchise fee were granted based on factors such as a conversion or assistance with expansion in certain markets.
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Initial Education | $0 | Not Applicable. | Initial Education is required. You will be required to pay for all related travel, meal, lodging and entertainment expenses. (See Item 11 for more detail.) |
| Recruiting 101 | $599 | Not Applicable. | Recruiting 101 is required. You will be required to pay for all related travel, meal, lodging and entertainment expenses. (See Item 11 for more detail.) |
| Broker/Owner Meetings and Retreats | $0 - $550 registration fee | Upon receipt of invoice. | Attendance is highly recommended; you must pay for all related travel, meal, lodging and entertainment expenses (if any). |
| Educational Courses | $50 - $2,000 Extra fees may be charged for educational and certification classes for professional credit, if offered. | 10 days after billing or at registration. | You may be required to complete, at your expense, certain educational courses as a condition of renewal. (See Item 11 for more detail.) |
| Conventions and Seminars | $195 - $1,000 registration fee per person. Extra fees may be charged for educational and certification classes for professional credit, if offered. Nominal fees or charges may also be assessed for a variety of social functions. | Prior to attending. | Attendance is highly recommended; you also must pay for all related travel, meal, lodging, and entertainment expenses. |
The Component One Continuing Franchise Fee will be due and will be considered late if not received by RE/MAX Regional by the 10th day of the month after the month the Office opens and by the 10th day of each month throughout the remainder of the term of the Franchise Agreement. RE/MAX Regional will have the right to increase the amount of the Component One Continuing Franchise Fee once in any calendar year following at least 60 days' prior written notice to you, provided such increase will not exceed 10% of the Component One Continuing Franchise Fee amount in effect at the time of any such increase. It is currently anticipated that this fee may increase by at least $2.50 on July 1, 2026, and by at least $2.50 on the 1st day of July in each subsequent year of the Franchise Agreement.
You will be required to pay RE/MAX Regional as a Component Two Continuing Franchise Fee, an amount equal to 1% of gross commissions (including referral fees) and other revenue earned, derived or otherwise generated from permitted real estate service activities handled by each one of your Sales Associates during the previous calendar month whether or not you actually collect a "broker service fee", as recommended below.
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the initial franchise fee can range from $0 to $17,500 in low-density markets and from $0 to $35,000 in high-density markets. These fees are influenced by factors such as conversions or assistance with expansion in specific markets. Remax Regional also has the discretion to modify or waive fees to facilitate acquisitions, mergers, conversions, or to encourage expansion. This flexibility suggests that Remax is willing to work with potential franchisees to lower the initial financial barrier, which could be beneficial for those starting their real estate career.
In addition to the initial franchise fee, Remax franchisees can expect to pay other fees for training and support. Initial Education is required and free, but franchisees must cover travel, meal, and lodging expenses. Recruiting 101 costs $599, with similar out-of-pocket expenses for travel. While attendance is recommended for Broker/Owner Meetings and Retreats ($0 - $550 registration fee) and Conventions and Seminars ($195 - $1,000 registration fee per person), these also involve additional travel costs. Furthermore, franchisees may need to complete educational courses at their own expense as a condition of renewal, with costs ranging from $50 to $2,000. These ongoing costs highlight the importance of budgeting for continuous professional development within the Remax system.
The FDD also mentions ongoing fees that impact a franchisee's financial obligations. The Component One Continuing Franchise Fee is due monthly, with potential annual increases not exceeding 10%. Remax anticipates this fee may increase by at least $2.50 on July 1, 2026, and by at least $2.50 on the 1st day of July in each subsequent year. Additionally, there is a Component Two Continuing Franchise Fee, which is 1% of gross commissions earned by each sales associate. These ongoing fees demonstrate the continuous investment required to maintain a Remax franchise and benefit from the brand's resources and support.
Ultimately, the initial franchise fee and ongoing costs are investments in the Remax brand, training, and support system. While the initial fee can be a significant upfront cost, the potential for fee reductions and the ongoing training opportunities may contribute to a franchisee's long-term success in the real estate industry. Prospective franchisees should carefully consider these costs in relation to the potential benefits of joining the Remax network and the resources available to support their career growth.