What is the relationship between RMCO, LLC and RE/MAX Holdings, Inc.?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
RE/MAX, LLC and its consolidated subsidiaries (the "Company") is a Delaware limited liability company and a wholly owned subsidiary of RMCO, LLC ("RMCO" or "Member"). RMCO is a subsidiary of RE/MAX Holdings, Inc. ("Holdings"). Holdings completed an initial public offering (the "IPO") of its shares of Class A common stock on October 7, 2013. Holdings' only business is to act as the sole manager of RMCO. As of December 31, 2024, Holdings owns 60.2% of the common membership units in RMCO, while RIHI, Inc. ("RIHI") owns the remaining 39.8%. The Company's distributions to RMCO and RMCO's subsequent distributions to Holdings are largely used to fund Holdings' distributions to its shareholders, including Holdings dividends and repurchases of common shares. Because of the Company's relationship as a wholly owned subsidiary of RMCO, the accompanying consolidated financial statements do not purport to reflect the results of operations and financial position which might have been obtained if the Company were autonomous.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, RMCO, LLC is a subsidiary of RE/MAX Holdings, Inc. RE/MAX, LLC is a wholly-owned subsidiary of RMCO, LLC. RE/MAX Holdings, Inc.'s primary business function is to act as the sole manager of RMCO. As of December 31, 2024, RE/MAX Holdings, Inc. owned 60.2% of the common membership units in RMCO, while RIHI, Inc. owned the remaining 39.8%.
The funds that RE/MAX, LLC distributes to RMCO, LLC, are then distributed to RE/MAX Holdings, Inc., and are largely used to fund RE/MAX Holdings, Inc.'s distributions to its shareholders. These distributions include dividends and repurchases of common shares. The financial statements included in the FDD are consolidated, meaning they reflect the combined financial performance of RE/MAX, LLC and its subsidiaries.
Because RE/MAX, LLC is a wholly-owned subsidiary of RMCO, LLC, the financial statements may not accurately reflect the financial position that RE/MAX, LLC would have if it operated independently. This is a common situation in franchising, where the financial performance of the franchise system is intertwined with the financial obligations and structure of the parent company.