What is the significance of RE/MAX and Motto being 100% franchised?

According to the 2025 Remax Franchise Disclosure Document, both Remax and Motto Mortgage operate under a 100% franchise model. This means that Remax, LLC does not own any of the brokerage offices operating under these brands. Instead, all Remax and Motto offices are owned and operated by independent franchisees. This is a common arrangement in franchising, where the franchisor focuses on brand development, training, and support, while franchisees manage the day-to-day operations of individual locations.

For a prospective franchisee, this 100% franchised model has several implications. First, it means that Remax's revenue is primarily derived from franchise fees, such as continuing franchise fees, annual dues, and marketing fund fees, as well as franchise sales and renewals. These fees are collected from franchisees in exchange for the right to use the Remax and Motto trademarks, access to technology and marketing tools, and other support services. The continuing franchise fees are based on the number of agents in a Remax office or the number of open Motto offices, aligning the franchisor's income with the franchisee's success.

Second, the franchisee benefits from the established brand recognition and support system provided by Remax, without direct competition from company-owned stores. This can be a significant advantage, as franchisees can leverage the Remax brand and resources to attract clients and grow their businesses. However, it also means that franchisees are responsible for managing all aspects of their business, including hiring, training, and marketing, within the guidelines set by the franchisor. The success of the franchise depends heavily on the franchisee's entrepreneurial skills and ability to manage their business effectively.

Finally, the 100% franchised model suggests that Remax's growth strategy relies on expanding its network of franchisees rather than investing in company-owned locations. This can lead to faster expansion and greater market penetration, as franchisees are typically more motivated and invested in the success of their own businesses. However, it also means that Remax must carefully select and support its franchisees to ensure consistent brand standards and quality of service across the network.