Real Estate Maximums (RE/MAX) is a leading real estate brokerage brand that has adopted the franchise model to widen its reach and support brokerage entrepreneurs. The promise of connecting to a huge brand, access to top-notch training, and a strong support system makes the RE/MAX franchise potentially an attractive business opportunity.
Getting established in the real estate brokerage industry can be difficult because it takes a lot of effort, experience, and resources. Fortunately, you can avoid the work of starting fresh by connecting to a recognized brand such as RE/MAX.
However, the franchise model is not without its issues, and as such, you must have the right information before embarking on it. Fransmart, the leading franchise development company for emerging brands, has you covered by providing everything you need to know about the franchising model. This guide provides key details about the RE/MAX franchise based on its FDD – including the location opportunities, potential earnings, the advantages and disadvantages of buying a franchise, and how to buy a franchise.
RE/MAX Business Highlights
- RE/MAX started as a real estate brokerage in 1973 and adopted the franchise model in 1975. Franchisees run RE/MAX real estate offices globally.
- It is one of the largest real estate franchises in the world, with 8,775 franchises in 100 countries. It records an average of $320 million in revenue.
- It adopts an innovative business model where each broker and office is granted total independence to run their businesses.
RE/MAX Franchise Cost
Starting a RE/MAX franchise will cost between $45,000 and $220,000. This includes the franchise fee, which varies based on location. Here is a breakdown of the cost items included in the total investment cost:
| Name of Fees | Low | High |
| Initial Franchise Fee (varies on location) | $17,500 | $35,000 |
| Office Space (depending on preference and location) | $3,500 | $60,00 |
| Office Furniture and Fittings | $4,000 | $50,000 |
| Office Supplies | $2,000 | $5,000 |
| Training Fees | $3,000 | $5,000 |
| Additional and Miscellaneous spendings | $15,000 | $60,000 |
| TOTAL | $45,000 | $220,000 |
Franchisees should expect other expenses too, including royalty and advertising fees. As well as regular fees common in almost every business, such as fees for insurance, audit, and attorneys.
What are Existing Franchisees Saying About RE/MAX’s Franchise?
“I think it’s an awesome brokerage. They are a nationally known company which is good for bringing in traffic. Their training is phenomenal, and their marketing is top-notch. I’d recommend this brokerage, especially to new agents.”
“I couldn’t sustain an active income with my business and needed another part-time job. I left RE/MAX for another brokerage to pursue real estate full time. Fees are high, and commission splits are poor. The commission split is 70/30 -(or 50/50 if the lead came through the office). Cap at $20k.”
Available Franchise Locations
There are available RE/MAX franchise opportunities across the U.S. and Canada regardless of its established presence. RE/MAX’s most significant growth opportunities seem to be in international markets, especially in Asia and South America, where the company is making massive inroads.
How to Buy a RE/MAX Franchise
Franchisees can choose a single-unit or multi-unit franchise. Navigating the complex process of buying a franchise can be difficult. However, you can get all the help from franchise professionals like Fransmart to become a high-achieving franchise owner.
Fransmart provides the best consultation on buying the franchise, setting up the franchise location, and making your franchise run successfully.
Advantages and Disadvantages of a RE/MAX Franchise
A RE/MAX franchise offers both pros and cons you must consider before buying one:
Pros
- RE/MAX provides a strong brand widely respected in the real estate market.
- Franchisees become part of a vast network of successful real estate brokers under the brand.
- RE/MAX franchisees use the latest technology for business operations, automated marketing, lead generation, and contact management.
- RE/MAX offers a relatively low investment cost compared to other major franchises.
Cons
- Franchisees must meet strict financial, educational, legal, and professional requirements.
- Agents and brokers have protested that RE/MAX does not provide as much support as other franchises.
Alternate Opportunities to RE/MAX Franchise
For an investor looking to build wealth through franchising, there are other industries and brands that could return stronger ROI than RE/MAX.
Fransmart has a portfolio of emerging brands with lower start-up costs, easier operations and the opportunity for better ROI including:
- RISE SOUTHERN BISCUITS & RIGHTEOUS CHICKEN
- BROOKLYN DUMPLING SHOP
- CURRY UP NOW
- IKE’S LOVE & SANDWICHES
- JARS BY FABIO VIVIANI
- PAYMORE
- SLAPFISH
- THE HALAL GUYS
- TAFFER’S TAVERN
- SAVANNAH SEAFOOD SHACK
- DUFFS CAKE MIX
If you’re ready to explore all your franchise options, contact Fransmart today for help choosing the ideal franchise for your goals.