How many Remax outlets ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor in 2024?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Column 2 Year | Column 3 Outlets at Start of Year | Column 4 Outlets Opened | Terminations | Column 6 Non- renewals | Reacquired by Franchisor | Ceased Operations - Other Reasons | Outlets at the End of the Year |
|---|---|---|---|---|---|---|---|---|
| Puerto Rico | 2022 | 5 | 5 | 0 | 1 | 0 | 1 | 8 |
| 2023 | 8 | 1 | 1 | 0 | 0 | 1 | 7 | |
| 2024 | 7 | 0 | 1 | 0 | 0 | 0 | 6 | |
| U.S. Virgin | 2022 | 3 | 0 | 0 | 0 | 0 | 0 | 3 |
| Islands | ||||||||
| 2023 | 3 | 0 | 0 | 0 | 0 | 0 | 3 | |
| 2024 | 3 | 0 | 0 | 1 | 0 | 1 | 1 | |
| Total | 2022 | 3546 | 180 | 59 | 107 | 0 | 83 | 3477 |
| 2023 | 3477 | 208 | 101 | 96 | 0 | 114 | 3374 | |
| 2024 | 3374 | 125 | 101 | 92 | 0 | 147 | 3150 |
Source: Item 20 — **OUTLETS AND FRANCHISEE INFORMATION (FDD pages 89–108)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a total of 147 Remax outlets ceased operations for reasons other than termination, non-renewal, or reacquisition by the franchisor in 2024. This number is derived from the 'Systemwide Outlet Summary For Years 2022 to 2024' table, which provides a breakdown of outlet activity across the entire Remax system. This figure excludes closures due to franchise terminations, non-renewals, or instances where Remax reacquired the franchise.
For a prospective Remax franchisee, this statistic offers insight into the stability and potential risks associated with owning a Remax franchise. While terminations and non-renewals might suggest dissatisfaction or failure, 'other reasons' for ceasing operations could include factors like franchisee retirement, relocation, or a voluntary decision to sell the business to a third party. It is important to note that this number reflects system-wide data and may not accurately represent the performance or closure rates in specific regions or markets.
It is essential for potential franchisees to investigate the reasons behind these closures to gain a more comprehensive understanding. Speaking with current and former Remax franchisees, as suggested in the FDD, can provide valuable context and help assess the potential challenges and opportunities in their desired market. Understanding the specific reasons for closures, beyond the broad category of 'other reasons,' can inform a franchisee's business plan and risk assessment.
Franchises can cease operations for a variety of reasons, so it's important to consider this number in the context of the total number of Remax franchises. A rate of 147 closures out of over 3,000 locations may be within a reasonable range for the real estate industry, but further investigation is warranted to determine the underlying causes and potential impact on a new franchisee's investment.