How does the initial franchise fee for a Remax franchise (Item 5) relate to the potential for building a successful and profitable business, considering the ongoing support and resources provided by Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
nts necessary to cover our other costs, such as administrative and legal expenses (RE/MAX Regional's costs could be significantly higher than the transfer fee depending upon the nature and complexity of the transaction).
OTHER FEES
| 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. |
| Type of Fee1 | Amount | Due Date | Remarks |
| Multiple Listing Service Fees | $0 to $100 per month per Office | Some Multiple Listing Services may charge this on a quarterly or annual basis. | Payable to your local Multiple Listing Service or Services |
| Holdover Fee | $2,500 per month per Office | Upon receipt of invoice. | Payable to RE/MAX Regional. |
| De-identification Fee | $500 per day | As incurred. Payable if you fail to de-identify within 10 days of termination or expiration of the Franchise Agreement. | Payable to RE/MAX Regional. |
| Lost Future Revenue15 | Will vary under circumstances | Upon early termination or abandonment. | Payable if the Franchise Agreement or Team Office Amendment is terminated early for any other reason than pursuant to mutual consent. |
| Unreported Agent Payments16 | Will vary under circumstances | As incurred. | Payable if you fail to report Sales Associates affiliated with your Office. |
| State | Component One Continuing Franchisee Fee (per Sales Associate in your Office) | ||
| Connecticut, Maine, Massachusetts, New Hampshire, | $165 | ||
| Rhode Island, or Vermont | |||
| Indiana | $149 | ||
| Minnesota/Wisconsin | $138 | ||
| State | Marketing Fund fee (per Sales Associate in your Office) | ||
| Connecticut, Maine, Massachusetts, New Hampshire, | $127 | ||
| Rhode Island, or Vermont | |||
| Indiana | $140 | ||
| Minnesota/Wisconsin | $131 | ||
| Type of Fee1 | Amount | Due Date | Remarks |
| Audit | Cost of inspection or audit. | As incurred. | Payable if you fail to furnish reports, supporting records or other required information or you understate the amounts owed to RE/MAX Regional for any 3-month period by more than 5%, or if an inspection reveals other conduct that is unlawful or a breach of the Franchise Agreement. |
| Interest and Late Charges | As liquidated damages and not as a penalty: 20% of amount owed for the late payment of Annual Dues; 10% of amount owed for all other fees (or maximum amount allowed by law); $100 per day for the failure to timely submit reports; plus interest of 1% per month compounded (or highest rate allowed by law) of amount owed for all fees except Annual Dues. | Due with payment of outstanding amounts or submission of reports. | Payable on all overdue amounts or for the failure to timely submit reports. |
| Costs and Attorneys' Fees | Will vary under circumstances. | As incurred. | Payable if we engage legal counsel in connection with your failure to comply with the Franchise Agreement. |
| Indemnification | Will vary under circumstances. | As incurred. | You have to reimburse RE/MAX Regional if it is held liable for claims, or otherwise incurs legal or other costs, arising from the operation of your Office. |
| 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. |
| Type of Fee1 | Amount | Due Date | Remarks |
| ---------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------- | --------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Agent Tools Platform | $0 | See Item 11. | As of the Issuance Date of this disclosure document, you are not required to pay a separate fee to access the Agent Tools Platform although REMAX, LLC reserves the right to require payment of reasonable fees to it, or an affiliate, for such access. Various fees will apply to purchases made and services used through the Agent Tools Platform, such as RE/MAX Marketplace and other third-party products and services (see Item 11). |
| BoldTrail Back Office Software | $0 | See Item 11 | As of the Issuance Date of this disclosure document, you are not required to pay a separate fee to use the BoldTrail Back Office Software, although we reserve the right to require payment of reasonable fees to us, or an affiliate, for such access. You will be required to pay Inside Real Estate for any additional services or enhancements that you may voluntarily choose that are not included in the BoldTrail Back Office Software. |
| QuickBooks Online (For use with BoldTrail Back Office Management Software) | Depending on the size of your Office, $65 to $235 per month per Office. | Depends on the plan you choose. See also Item 11. | Payable to Intuit Inc. |
| Type of Fee1 | Amount | Due Date | Remarks | |-----------------------------------|--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------| | Multiple Listing Service Fees | $0 to $100 per month per Office | Some Multiple Listing Services may charge this on a quarterly or annual basis. | Payable to your local Multiple Listing Service or Services | | Holdover Fee | $2,500 per month per Office | Upon receipt of invoice. | Payable to RE/MAX Regional. | | De-identification Fee | $500 per day | As incurred. Payable if you fail to de-identify within 10 days of termination or expiration of the Franchise Agreement. | Payable to RE/MAX Regional. | | Lost Future Revenue15 | Will vary under circumstances | Upon early termination or abandonment. | Payable if the Franchise Agreement or Team Office Amendment is terminated early for any other reason than pursuant to mutual consent. | | Unreported Agent Payments16 | Will vary under circumstances | As incurred. | Payable if you fail to report Sales Associates affiliated with your Office. | 1 Except as noted below, all fees are uniformly imposed and collected by and payable to either RE/MAX Regional or one of its affiliates. All fees are non-refundable.
2 The high commission concept contemplates that you will charge and collect Monthly Ongoing Fees (see footnote 3), Annual Dues, and Marketing Fund fees from each of your Sales Associates. The term "Sales Associate" means anyone whose license is registered with the Office and all Team Offices including, without limitation, sales associates, broker associates, brokers, managers, licensed administrators and/or each designated or managing broker of record. You will be required to pay the Monthly Ongoing Fees, Annual Dues, and Marketing Fund fees whether or not you collect such dues or fees from your Sales Associates. Notwithstanding any failure by you to meet your Minimum Agent Count (see Item 12), you will not be excused from the payment of, and you will be required to pay, all Monthly Ongoing Fees, Annual Dues, and Marketing Fund fees as if you had met your Minimum Agent Count.
3 Monthly Ongoing Fees. You will be required to pay RE/MAX Regional monthly ongoing fees ("Monthly Ongoing Fees") as follows:
● Component One Continuing Franchise Fee. The first component, the Component One Continuing Franchise Fee ("Component One Continuing Franchise Fee"), may be referred to simply as "continuing franchise fee" on billing statements or invoices you receive. Under this component, you will be required to
pay RE/MAX Regional, on a monthly basis, $138 to $165 per month for each Sales Associate in your Office during the previous calendar month whether or not you actually collect management fees from your Sales Associates as recommended below.
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the initial fees cover a range of expenses related to setting up a franchise. These fees include $0 for Initial Education, but franchisees must cover their travel, meal, lodging, and entertainment expenses. Recruiting 101 costs $599, with similar stipulations regarding travel expenses. Broker/Owner Meetings and Retreats range from $0 to $550 for registration, while Educational Courses can cost between $50 and $2,000, with extra fees for professional credit. Conventions and Seminars range from $195 to $1,000 per person for registration, with additional costs for travel and social functions. These initial investments are intended to provide franchisees with the necessary training and networking opportunities to start their business.
Other fees include Multiple Listing Service fees ranging from $0 to $100 per month, Holdover Fees of $2,500 per month, and a De-identification Fee of $500 per day if the franchisee fails to de-identify within 10 days of termination. There are also potential costs for Lost Future Revenue and Unreported Agent Payments, which vary depending on the circumstances. Additionally, franchisees in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, or Vermont pay $165 for the Component One Continuing Franchisee Fee and $127 for the Marketing Fund fee per Sales Associate. In Indiana, these fees are $149 and $140, respectively, while in Minnesota/Wisconsin, they are $138 and $131. These fees contribute to the ongoing support and resources provided by Remax, such as marketing and training programs.
Fees such as the Audit fee (cost of inspection or audit), Interest and Late Charges (20% of amount owed for late payment of Annual Dues; 10% of amount owed for all other fees), and Costs and Attorneys' Fees (will vary under circumstances) are contingent on compliance with the franchise agreement. Furthermore, franchisees may incur costs for Indemnification, which will vary based on circumstances. The Agent Tools Platform and BoldTrail Back Office Software have no separate fee, but fees apply to purchases and services used through these platforms. QuickBooks Online ranges from $65 to $235 per month, depending on the office size. These ongoing fees ensure franchisees have access to essential tools and support, but it's crucial to manage operations effectively to avoid additional costs.
For franchisees in Indiana, there's a Regional Development fee of $200 per month in high-density areas and $150 per month in low-density areas. Team Offices incur a $1,000 initial fee, a $500 renewal fee, and a $100 monthly ongoing fee. These fees are subject to potential increases. The franchisor emphasizes that failure to collect fees from Sales Associates does not relieve the franchisee's obligation to remit Monthly Ongoing Fees. Remax may offer waivers or deferrals of Annual Dues to qualified franchisees acquiring additional offices or converting existing real estate offices. These financial obligations are designed to support the Remax system and provide franchisees with the resources necessary for success, but franchisees must carefully manage their finances and operations to maximize profitability.