Re/Max are an international real estate brokerage franchisor. They provide branding and business support to individually owned real estate brokerages in Australia and worldwide. Operating a high transactions/high commissions business model, the company says their success is built on supporting and encouraging entrepreneurs who desire the freedom to carve their own path, their own way.
Founded in Denver in 1973 and franchising since 1975. The company claims to sell more residential real estate than any other brokerage in the world and be the most recognised real estate brand in Australia. The company has more than 6,000 offices in nearly 100 countries and employs more than 135,000 agents across the globe.Â
Re/Max at a glance:
You don’t need deep pockets to start a Re/Max franchise, nor do you need high net worth and a bucket load of liquid cash. However, you do need a valid real estate license for the state where you intend to operate. This makes Re/Max franchises suitable for established agents who wish to go out on their own or small independent brokerages who wish to scale up but lack the network capacity to do so. Note that you cannot run this franchise as a ‘hands off’ business or on a part-time basis. Re/Max demands that franchisees are actively engaged in day to day operations and on a full-time basis. Neither can you run a Re/Max franchise as a ‘work from home’ or virtual business, you have to operate a bricks and mortar store. Lastly, you cannot run your Re/Max operation in conjunction with any other real estate business that you own or operate and that competes in the same market as your Re/Max office.
A Re/Max real estate brokerage franchise can cost anywhere from $45,000 to $250,000, rating the opportunity start-up costs as low to moderate. The company does not set a minimum net worth or liquid cash requirement. The initial franchise fee ranges from $17,500 to $37,500 depending on the size of the business.
After opening, you’re required to pay an array of ongoing fees and charges. They include:
| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $17,500 | $37,500 |
| Office set up fee | $3,500 | $72,000 |
| Furniture, fixtures, equipment | $2,000 | $20,000 |
| Computer system | $3,000 | $22,000 |
| Training expenses – lodging, travel, etc | $2,000 | $15,000 |
| Inventory and supplies | $500 | $4,000 |
| Training fees and expenses | $3,000 | $7,000 |
| Insurance | $2,000 | $6,000 |
| Licenses and miscellaneous costs | $1,000 | $11,000 |
| Other operational costs – three months | $10,000 | $50,000 |
Your loan details
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
Your results
Monthly payments
$-
Avg. monthly interest
$-
Total interest
$-
Total cost of finance
$-
Unlike most businesses, Re/Max franchises do not function as a company with employees, customers, and a balance sheet that reflects company profit or loss. Instead, Re/Max franchises operate as a collective, a business hub where a wide variety of agent types, including full-time agents, part-time agents and military relocation specialists are all in charge of their own businesses, share office expenses and operate under a high commission concept. This means as a Re/Max franchisee you are earning personal income, not corporate income.Â
Re/Max does not publish official financials or earnings for Australian franchisees, but according to external sources, the average salary for Re/Max franchise owners is $50,000 to $80,000 annually.Â
The failure rate for a Re/Max franchise is 4% to 15% – ranking as moderate to high.
Low barriers to entry and the support of a global real estate giant could make joining the Re/Max network a solid proposition for newbie and established real estate agents. Although the Australian real estate market is mature and highly competitive, Re/Max claim their agents close more transactions per year than any other Australian brokerage and they consistently pay high commission splits in favour of the agent.
Franchisees are granted the right to operate an office at a specific address-only location that must be approved by the company. There is no exclusive territory. Franchisees may face competition from other Re/Max franchisees, from outlets that Re/Max directly owns, or from other channels of distribution or competitive brands that the company controls.
Re/Max support for franchisees includes:
It starts with an application. Begin the process today.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new real estate business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across Australia. Just tell us what you need and leave the rest to us.
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
Swoop promise
At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.
Find out more about Swoop’s editorial principles by reading our editorial policy.
Ready to grow your business?
UK
IRE
AU
CA
US
ZA
NG
yet? Register here!