What is the range of the initial investment for a Remax franchise in Item 7, and how does this compare to the potential financing options available through Remax Regional as described in Item 10?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in agreement | Disclosure document item |
|---|---|---|
| a. Site selection and acquisition/lease | Subsections 2.A. and 2.C., Section 3, and Subsection 13.B.(1) of Franchise Agreement | Items 7, 11 and 12 |
| b. Pre-opening | Section 3 and Subsections 8.B., 8.D. and | Items 7 and 8 |
| purchases/leases | 8.L. of Franchise Agreement | |
| c. Site development and other pre-opening requirements | Section 3, Subsections 8.A., 8.B., 8.C., 8.D., 8.F., 8.G., 8.J. and Subsection 13.B.(2) of Franchise Agreement | Items 7, 11 and 12 |
| d. Initial and ongoing training | Subsections 8.G., 9.A., 9.D., 9.F., and 13.B.(3) of Franchise Agreement | Items 1, 6 and 11 |
| e. Opening | Section 3 and Subsection 13.B.(2) of Franchise Agreement | Items 1 and 11 |
| f. Fees | Subsection 2.E.(9), Section 6, Subsection 9.F., Subsection 12.D.(8), Subsection 13.C., and Subsection 15.H. of Franchise Agreement; and Sections 2 and 3 of Team Office Amendment. | Items 5, 6, 7 and 11 |
| g. Compliance with standards and policies/operating manual | Section 4 and Subsections 8.A., 8.B., 8.C., 8.J., 8.K., and 8.L. of Franchise Agreement; and Section 7 of Team Office Amendment. | Items 8 and 11 |
| h. Trademarks and proprietary information | Section 4, Subsections 5.C., 5.E., 8.K., 9.G., and Subsections 14.B. and C. of Franchise Agreement | Items 1, 11, 13 and 14 |
| Obligation | Section | Disclosure |
| in agreement | document item | |
| i. Restrictions on products/services offered | Subsections 2.A., 2.C., 2.D., 3.C., 4.B., 8.B., 8.C., 8.F., and 9.E. of Franchise Agreement | Items 8, 11 and 16 |
| j. Warranty and customer service requirements | Subsections 5.B., 5.C., 8.B., 8.F., and 8.I. of Franchise Agreement; Section 7 BoldTrail Back Office License Agreement and BoldTrail Platform Agreement | Items 8, 11 and 16 |
| k. Territorial development and sales quotas | Subsection 2.C., Section 7 and Subsections 13.C. and 13.D. of Franchise Agreement | Item 12 |
| l. On-going product/service purchases | Section 3, Subsections 8.A., 8.B., 8.D., 8.H., 8.I., 8.J., and 8.K. of Franchise Agreement | Item 8 |
| m. Maintenance, appearance and remodeling requirements | Section 3 and Subsections 8.A. and 8.B. of Franchise Agreement | Items 7 and 11 |
| n. Insurance | Subsection 8.D. and 14.K. of Franchise Agreement | Items 7 and 8 |
| o. Advertising | Subsections 4.B., 6.D., 8.C., 8.J. and 9.C. of Franchise Agreement; and Section 7 of Team Office Amendment | Items 6 and 11 |
| p. Indemnification | Subsection 5.D. of Franchise Agreement; Section 8 of BoldTrail Back Office License Agreement and BoldTrail Platform Agreement | Item 6 |
| q. Owner’s participation/ | Section 1 and Subsections 2.B., 5.B., 8.E. | Items 1, 11 and 15 |
| management/staffing | and 8.F. of Franchise Agreement | |
| Obligation | Section | Disclosure |
| in agreement | document item | |
| r. Records and reports | Subsection 6.F. (2), Section 10 and Subsection 13.C.(3) of Franchise Agreement; and Section 9 of Team Office Amendment | Items 11 and 17 |
| s. Inspections and audits | Section 11 of Franchise Agreement | Item 6 |
| t. Transfer | Section 12 and Subsection 13.B. of Franchise Agreement | Item 17 |
| u. Renewal | Subsection 2.E. of Franchise Agreement; and Section 11 of Team Office Amendment | Item 17 |
| v. Post-termination obligations | Section 14 of Franchise Agreement | Item 17 |
| w. Non-competition covenants | Subsections 5.F. and 14.J. of Franchise Agreement | Item 17 |
| x. Dispute resolution | Not Applicable | Not Applicable |
| y. Owners/shareholders guarantee | Subsection 12.F. of Franchise Agreement and Guaranty and Assumption of Obligations attached to Franchise Agreement | Item 15 |
FINANCING
RE/MAX Regional offers financing to prospective franchisees for the initial franchise fee and, for renewing franchisees in good standing, the renewal franchise fee. In the past, we have offered—and we may continue to offer—financing as a financial incentive to facilitate mergers or conversions. In select cases in the future, we may also offer financing for acquisitions or other growth-related expenses.
If you wish to finance the initial franchise fee for a residential real estate office, the initial franchise fee will be $37,500 if your franchise is in a high-density area (as opposed to $35,000 if you pay it in one lump sum) or $19,000 if your franchise is in a low-density area (as opposed to $17,500 if you pay it in one lump sum). If you wish to finance the initial franchise fee for a commercial real estate office, the initial franchise fee will be $27,000 (as opposed to $25,000 if you pay it in one lump sum). A copy of the current form of Promissory Note for the initial franchise fee ("Promissory Note 1") is attached to this disclosure document as Exhibit B-1. Those who wish to finance this fee must pay at least 50% in cash as a down payment when the Franchise Agreement is signed. The balance of the initial franchise fee will be due in 12 equal monthly installments (however, if in the same calendar month that you sign the Franch
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Item 7 provides an estimated initial investment range, but the specific figures are not included in the provided excerpts. The FDD notes that the range of total expenditures may vary considerably, depending on factors such as the size and location of the office. For example, a larger office or one in a luxury resort community could significantly increase the initial investment. Converting an existing real estate office may lower costs.
Item 10 indicates that Remax Regional offers financing to prospective franchisees specifically for the initial franchise fee and, under certain conditions, for renewal franchise fees. They may also offer financing as an incentive for mergers or conversions, and in select cases, for acquisitions or other growth-related expenses. If a franchisee wishes to finance the initial franchise fee for a residential real estate office, the initial franchise fee is $37,500 in a high-density area (compared to $35,000 if paid in a lump sum) or $19,000 in a low-density area (compared to $17,500 if paid in a lump sum). For a commercial real estate office, the financed fee is $27,000 (compared to $25,000 if paid in a lump sum).
To finance the initial franchise fee, Remax requires a minimum 50% cash down payment when the Franchise Agreement is signed. The remaining balance is paid in 12 equal monthly installments, automatically charged to the franchisee's bank account. If the franchisee pays the remaining balance in full in the same month as signing the agreement and making the down payment, Remax will waive the installment fee. The availability and terms of any other financing will depend on factors such as the franchisee's creditworthiness and the lending policies of financial institutions.
Because the initial investment range is not specified in the provided excerpts, a prospective franchisee should carefully review Item 7 of the FDD to understand the full scope of potential costs. They should also discuss financing options for costs beyond the initial franchise fee with Remax Regional to determine what support may be available for other start-up expenses.