Does Remax, LLC, RE/MAX Regional, or their affiliates currently derive revenue from required franchisee purchases or leases, besides what is described in the FDD?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
there are no contractual limitations on the frequency and cost of these obligations. (Franchise Agreement - Section 3.)
Although REMAX Regional does not currently require that you purchase, lease, or use any hardware or software from any other specific supplier, in the future you may be required to do so.
Revenue from Franchisee Purchases
Neither REMAX, LLC, RE/MAX Regional nor any of their affiliates received revenue or other material consideration from franchisees as a result of franchisee required purchases or leases in the year ending December 31, 2024, but we reserve the right to do so in the future.
Percentage of Products or Services to be Purchased in Accordance with RE/MAX, LLC's Specifications
The cost of products or services required to be purchased or leased either from designated or approved sources of supply or in accordance with REMAX, LLC's specifications represents from 10% to 25% of your total purchases or leases in the establishment and operation of the Office. These percentages may vary significantly from office to office depending on various factors including, for example, the geographic location of the Office, whether or not it is a conversion of an existing real estate office, the number of Sales Associates licensed with the Office, the type of tenant finish or improvement you choose and how you prefer to furnish and decorate the premises.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–53)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax, LLC, RE/MAX Regional, nor any of their affiliates received revenue or other material consideration from franchisees as a result of required purchases or leases in the year ending December 31, 2024. However, Remax reserves the right to do so in the future.
REMAX, LLC and/or its affiliates may receive a flat fee, access fee, percentage or other consideration from approved suppliers as a result of their sale of products, services or supplies to franchisees and Sales Associates. Typically, approved suppliers pay REMAX, LLC a minimum of $20,000 (either via a flat annual access fee, a percentage of net annual sales (typically 3% to 10%), or a combination of both). Remax has the right to receive these payments from approved suppliers on account of their dealings with franchisees and to use the amounts it receives without restriction, for any purpose.
The cost of products or services required to be purchased or leased either from designated or approved sources of supply or in accordance with REMAX, LLC's specifications represents from 10% to 25% of your total purchases or leases in the establishment and operation of the Office. These percentages may vary significantly from office to office depending on various factors including, for example, the geographic location of the Office, whether or not it is a conversion of an existing real estate office, the number of Sales Associates licensed with the Office, the type of tenant finish or improvement you choose and how you prefer to furnish and decorate the premises.