Re/Max franchise

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Re/Max are an international real estate brokerage franchisor. They provide branding and business support to individually owned real estate brokerages in the UK 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.

Re/Max business details

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. The company has more than 135,000 agents in 110 countries across the globe. 

Re/Max at a glance:

  • UK offices: More than 45
  • Required Investor net worth: not stated
  • Required investor liquid cash: Not stated
  • Min. investment: £20,000
  • Max. investment: £240,000
  • Standard franchise term: 5 years

Can I start a Re/Max franchise?

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.

How much does a Re/Max franchise cost?

A Re/Max real estate brokerage franchise can cost anywhere from £20,000 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:

  • Continuing franchise fee: £138 to £165 per month per agent
  • Broker fee: 1% of gross sales or commissions
  • Technology fee: £15 per month per agent
  • Marketing fee: £131 per month per agent
  • Annual dues: £410 per agent
  • Hot air balloon fund fee (marketing): £100 per month per office
  • Team office renewal fee: £500 per office per year
  • Monthly team office fee: £100 per month per employee
  • Document preparation fee: £500 to £2,000

Estimated key costs to open a Re/Max franchise:

Key Costs GuideLowHigh
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
Licenses and miscellaneous costs£1,000£11,000
Other operational costs – three months£10,000£50,000

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Are Re/Max franchises profitable?

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 UK 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 UK franchise owners. 

What is the failure rate for a Re/Max franchise?

The failure rate for a Re/Max franchise is 4% to 15% – ranking as moderate to high.

Why should you start a Re/Max franchise?

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 UK real estate market is mature and highly competitive, Re/Max claim their agents close more transactions (13 per year) than any other UK brokerage and they consistently pay high commission splits at 95/5 in favour of the agent.

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What are the franchise territory policies for Re/Max?

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.

What franchise resources does Re/Max offer?

Re/Max support for franchisees includes:

  • Training: Franchisees are provided with a four-day mandatory initial education program that is conducted in person, as well as virtually, via a webinar. Franchisees are not required to achieve a stated level of performance in the initial education program. Prior to renewal, franchisees may be required to complete certain courses. Re/Max also conducts an annual convention and may periodically conduct training conferences designed to build the Re/Max image, assist franchisees in recruiting potential sales associates and provide an international forum for exchanging ideas on managing and operating Re/Max offices. Attendance is optional at these events.
  • Marketing support: Re/Max helps its franchisees with national and local advertising and marketing support. 
  • Third-party financing: Re/Max can provide financial support for investors, however, you may be able to secure more economical or flexible financing from the many independent funders who provide business loans to franchise operators.
  • Technology and innovation: The company offers initial technology support and access to proprietary software.

What is the process for starting a Re/Max franchise?

It starts with an application. Begin the process today.

Secure franchise funding with Swoop

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 the UK. Just tell us what you need and leave the rest to us.

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Written by

Chris Godfrey

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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