Re/Max are an international real estate brokerage franchisor. They provide branding and business support to individually owned real estate brokerages in Canada 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, Re/Max are headquartered in Denver, Colorado. The company claims to sell more residential real estate than any other brokerage in the world and be the most recognized real estate brand in Canada. The company has more than 135,000 agents in 110 countries across the globe.
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 $42,000 to $236,500, 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 |
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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.
Re/Max does not publish official financials or earnings for US franchisees, but sources report that the average salary for Re/Max franchise owners is $50,000 annually – 18% below the national average income for all Canadian franchise owners.
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 Canadian real estate market is mature and highly competitive, Re/Max claim their agents close more transactions (13 per year) than any other Canadian brokerage and they consistently pay high commission splits at 95/5 in favor 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:
Technology and innovation: The company offers initial technology support and access to proprietary software.
It starts with an application. Begin the process today.
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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.
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