RE/MAX Franchising Information & Startup Cost
RE/MAX is a business that specializes in real estate brokerage. Founded in 1973 by brothers and business partners Dave and Gail Liniger. RE/MAX has grown into a global real estate network with over 100,000 agents spread across 100 countries and counting.
Its franchising arm was opened 1975 and since then has continued to spread to new locations. RE/MAX is currently seeking to open more franchise units across the United States and the world. Becoming its franchisee isn’t hard either.
The information contained in this article is sufficient to get you started.
How Much Can I Earn As A RE/MAX Franchisee?
Every prospective franchisee will be interested in knowing the earning potentials inherent. However, the sad news is that a specific figure cannot be conjured up. Earnings are relative and depend on multiple factors. These range from the size of your franchise or number of units you plan to operate and your location among others.
Nevertheless, RE/MAX allows you to speak with its existing franchisees. This is the most effective way of finding out the earning potentials. You’ll need to begin the process of application to get to the validation stage where you hear from existing RE/MAX franchisees.
Fruitful discussions can also be held with representatives from the franchisor. The FDD also contains a wealth of information regarding cost and earning potentials. You might want to explore such channels to find answers.
Does RE/MAX offer to finance? It does. This franchisor has made an in-house financing arrangement that covers the franchise fee. Getting qualified for such financing may depend on certain conditions. Also, Existing franchisees seeking to renew their franchise may get some part of the renewal fee covered by the franchisor.
As a prospective franchisee, there are financial requirements or obligations the franchisor demands. Qualification for this franchise opportunity largely depends on your ability to meet set financial requirements. These requirements constitute an estimated initial investment ranging from $40,000 to $284,000 plus liquid cash in the sum of $35,000.
For more details on the estimated initial investment, the following breakdown will be of significant help. The initial franchise fee is included in the initial investment and ranges from $17,500 to $37,500. The amount you pay depends on the size or number of franchise units you seek among other factors.
Office set-up costs range from $3,500 to $95,000, exterior office signage ranges between $500 to $10,000. Furniture, fixtures & equipment costs between $5,000 to $40,000, inventory & supplies will cost anywhere from $500 to $4,000.
There are training fees & expenses too. These will take up about $1,500 to $4,000 of the estimated initial investment. Miscellaneous opening costs range from $2,000 to $19,000. Franchisees will be needing additional funds as running costs for 3 months. This ranges from $10,000 to $75,000.
There are other fees you’re likely to incur in the course of running or operating the franchise. These range from varying percentages of royalty fees, a transfer fee of $2,500, renewal fee of between $6,000 to $14,000 and minimum agent count fees.
Others are interest and late charges of varying degrees, educational courses with varying costs, registration fees of $195 to $800 for conventions & seminars and product purchases. These are only a few of several cost implications you’re likely to incur as a RE/MAX franchisee.
Details of these and more are fully stated in the franchise disclosure document (FDD). Getting access to this document will require applying or requesting for it. This is tied to the franchise application process.
Franchise Term And Renewal
RE/MAX allows for a maximum term limit of 5 years. This is the initial franchise term duration. While it allows for term renewal, such renewal will be subject to franchise agreement terms which are quite different from the original terms.
Franchise term renewal will also require that you complete a RE/MAX 501: Maximizing Your Office Potential course. Other courses too may apply. The type of training rests entirely on the discretion of the franchisor.
Training is provided in several ways. First, new franchisees undergo a 45-hour training at the franchisor’s headquarters in Denver, CO. This is followed by additional training that includes online and classroom. These are available on-demand.
RE/MAX’s training program is mandatory for all franchisees in addition to managers. This won’t be compulsory if you won’t be needing the services of a manager. Refresher training courses are offered by the franchisor. This is aimed at updating their skills as well as widening their experience and scope.
RE/MAX holds annual conferences or conventions where lots of real estates skills are passed on to franchisees. While training is mandatory for all franchisees and their managers (if any), the same doesn’t apply for conventions & conferences. In other words, such events are optional.
RE/MAX provides comprehensive support for franchisees covering a variety of critical areas. This helps enhance the chances of the franchise. Such support includes marketing and ongoing support. Under its marketing support, franchisees get to use its ad templates, provision of national and regional media advertising plus social media advertising.
Other areas covered include SEO, web development and email marketing. Ongoing support includes newsletter releases, meetings & conventions for updating client skill and knowledge, as well as a toll-free line.
Other forms of support include a grand opening ceremony, online support, security & safety procedures, field operations, site selection, use of its proprietary software plus access to its franchisee intranet platform.
Whether you’re looking for domestic (within the United States) or international franchise opportunities, RE/MAX has you covered. All you need to do is fill and send its online form. This kick-starts the entire process. A representative from the franchisor calls you to give you all the information you seek.
This is in addition to the application process which you are guided through. The entire process isn’t difficult from the moment you establish contact when you sign the franchise agreement. The franchisor ensures you get the necessary guidance you seek.
With the information provided on the RE/MAX franchise, you can take the first step to actualize your desires of starting one. It doesn’t matter if you live within the United States or not, the application process is pretty much the same except for little variations.