What is the nonrefundable initial franchise fee for a Remax residential real estate franchise in a high-density area (population of 30,000 or more) if paid in one lump sum?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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Item 4
BANKRUPTCY
No bankruptcy is required to be disclosed in this Item.
INITIAL FEES
If you are purchasing a residential real estate franchise, you must pay RE/MAX Regional a nonrefundable initial franchise fee when you sign the Franchise Agreement. The amount of this fee varies depending upon the general population density of the market area where the Office will be located. The parameters of the fee are as follows:
- (a) $35,000 in areas with a general population of 30,000 or more people ("high-density"); or
- (b) $17,500 in areas with a general population of less than 30,000 people, that are substantially distant from a major urban area, and in which no appreciable population growth is envisioned ("low-density").
If you are purchasing a commercial real estate franchise, you must pay RE/MAX Regional a nonrefundable initial franchise fee of $25,000, regardless of population density, when you sign the Franchise Agreement and Commercial Office Addendum.
The applicable, nonrefundable initial franchise fee will be determined by RE/MAX Regional and inserted into Subsection 6.A. of the Franchise Agreement before you sign it. The initial franchise fee is not refundable for any reason.
RE/MAX Regional has the right to re-classify a market area upon renewal of the franchise. For example,
Source: Item 5 — INITIAL FEES (FDD pages 29–43)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the initial franchise fee for a residential real estate franchise is dependent on the population density of the area where the office will be located. For areas considered "high-density," defined as having a general population of 30,000 or more people, the initial franchise fee is $35,000 if paid in one lump sum. This fee is nonrefundable and must be paid when the Franchise Agreement is signed.
Remax Regional determines the classification of a market area, and this classification can be re-evaluated upon renewal of the franchise. This means an area initially classified as low-density could be reclassified as high-density at the time of renewal, potentially affecting fees at that time.
It's important to note that Remax also offers financing options for the initial franchise fee, but choosing to finance will increase the fee. For a high-density area, financing the fee increases it to $37,500. Additionally, Remax Regional may, at its discretion, offer incentives that could reduce the initial franchise fee, but these are not guaranteed and can be discontinued at any time. During 2024, some franchisees paid initial fees ranging from $0 to $35,000 for high-density markets due to such discounts.
In addition to the initial franchise fee, a new Remax franchisee will also be required to pay a nonrefundable $1,000 Team Office Initial Fee for each Team Office that Remax, LLC allows them to open.