Does Remax reserve the right to grant franchises or operate competing businesses at any location, including near my office?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | I have received, personally reviewed, and understand the information contained in the Franchise Disclosure Document, including the attached exhibits, such as the Team Office Amendment. | ||
|---|---|---|---|
| True | False | ||
| 2. | I acknowledge that I have had the opportunity—whether or not I may have chosen to do so—to discuss with my | ||
| attorney, accountant, or other professional advisor the benefits and risks of opening a Team Office. | |||
| True | False | ||
| 3. | I am relying upon information I received concerning RE/MAX Integrated Regions, LLC and not information | ||
| concerning any parent company of RE/MAX Integrated Regions, LLC. | |||
| True | False | ||
| 4. | Has any employee or other person speaking on behalf of RE/MAX Integrated Regions, LLC made any | ||
| representations, assurances, guarantees, or promises regarding the following in reference to operating a Team | |||
| Office? | |||
| Revenues? | Yes | No | |
| Profits? | Yes | No | |
| Likelihood of Success? | Yes | No | |
| 5. | Do you understand that the success of your Team Office will depend in large part upon your skills and abilities, | ||
| competition from other businesses, interest rates, inflation, supply costs, lease terms and other economic and | |||
| business factors? | |||
| Yes | No | ||
| 6. | Do you understand that in all dealings with you, the officers, directors, employees and agents of RE/MAX | ||
| Integrated Regions, LLC act only in a representative capacity and not in an individual capacity and such dealings | |||
| are solely between you and RE/MAX Integrated Regions, LLC? | |||
| Yes | No | ||
| 7. | Has any employee or other person speaking on behalf of RE/MAX, LLC made any representations, assurances, | ||
| guarantees or promises that you will have or receive any type of territorial rights or protection? | |||
| Yes | No | ||
| 8. | Do you understand that we and our affiliates have the right to grant franchises, team offices, or operate competing | ||
| businesses at any location whatsoever, as we may determine, including a location near your main Office location | |||
| or near your Team Office? | |||
| Yes | No | ||
| 9. | Has any employee or other person speaking on behalf of RE/MAX Integrated Regions, LLC made any | ||
| representations, assurances, guarantees or promises that are contrary to, or different from, the information | |||
| contained in the Franchise Disclosure Document? |
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, Remax and its affiliates retain the right to grant franchises, team offices, or operate competing businesses at any location they choose. This includes locations near a franchisee's main office or team office. This information is part of a questionnaire that prospective franchisees are expected to review and acknowledge.
This means that a Remax franchisee may face competition from other Remax franchises or company-operated businesses in close proximity to their own location. This lack of territorial protection is a significant factor to consider, as it could impact a franchisee's market share and profitability. It is not uncommon in the franchise industry for franchisors to reserve the right to expand their brand's presence, but the extent to which they can encroach on existing franchisees' territories varies.
Prospective Remax franchisees should carefully evaluate the potential impact of this policy on their business. They should consider the local market conditions, the existing Remax presence in the area, and the likelihood of new franchises or company-operated businesses opening nearby. It would be prudent to discuss this issue with existing franchisees to understand their experiences and strategies for managing competition within the Remax system. Additionally, prospective franchisees may want to inquire about Remax's criteria for granting new franchises in relation to existing locations.