RE/MAX Franchise Cost And Fee
“We find homes to fit you” It is a very known and popular slogan in the US. The success behind the RE MAX franchise business model lies behind this slogan. Priority of all the RE MAX franchisees is your needs in terms of all aspects. Certainly, customer service is the main element in the success of the RE/MAX. It won’t be false to say; today nobody sells more real estate than RE/MAX. What are you waiting to become a member of this big family?
Information About RE MAX
RE/MAX is one of the leading franchisors in real estate. Today, for someone who wants to earn money from real estate, it is the first company looking for the terms and conditions.
The Company established in Colorado as a single office in 1973. After two years of success, the Company decided to promote this business model. The first franchise opened in 1975. Since then, with franchises all over the world, RE/MAX has grown into a global real estate network. Today, in over 100 countries there are more than 120,000 Sales Associates with approximately 8,000 sales offices.
How Does The System Work?
The business model of the RE/MAX built upon the franchising. The system is a global network of franchisees. The headquarters of the Company is still in Denver and it is the center of this huge network.
The continuity of this system for years proves the success of it. Although there are many millions of partners in the world, every day the Company searching for qualified new members. In other words, the model still stands on attracting productive agents and providing them with all the materials for success in the sector: ongoing support, brand awareness, training opportunities etc.
The franchise offered includes the operation under the brand name of RE/MAX. The franchise offers a variety of real estate services to the general public. There are three types of franchises:
- Prospective Franchisees
- Renewing Franchises
All of these three must meet the standards required for the new franchises. These include qualifications on experience, education, licensing, background and past records, financial capacity, capabilities etc.
What Should I Do?
The only legal requirement for the operation of the franchise is about holding a real estate broker license.
- Although it is highly recommended by the franchisor, franchisee or the owner of the business entity is not required to participate in direct operations personally as long as the local laws permit.
- The franchisee or the owner will be required a valid real estate broker license or a substitutive license accepted locally. If the franchise or the owner won’t directly operate the Office or don’t have a valid license, someone who has the real estate broker license should be employed in a Managerial position.
You should operate at an Office which has a specific address. The location of the address should be approved by the Company. There is no territorial protection principal of the Company. This aims to adapt to the highly competitive nature of the retail industry.
Other than legal requirements, you are expected to be motivated, have good communication skills, hard-working, prescient on real estate market, being time committed and have other qualities to understand and meet the necessities of the people. Otherwise, you may not survive. The RE MAX franchise owner salary depends on these factors.
The length of the initial franchise term is 5 years. If you are successful and still motivated for another term, renewal is available. The agreement of the new franchise and the renewal may differ depending on the franchisor’s demands.
Training And Support
There is a mandatory training for franchises, owner and the Manager. It is 4-and-a-half-day training program and takes place in the franchisor’s headquarters in Colorado. Although there are no success criteria, franchisees or owner and manager are required to attend and complete this program.
If you are already a partner of the RE/MAX and you want to renew franchisees, you are required to complete the course/courses designed by the Company. The courses are generally about how to increase your capability, maximize your potential etc. For instance, RE/MAX 501 is about Maximizing Your Office Potential. This is a management refresher course for adaptation of franchisees to an increasingly complex real estate industry.
There is also an annual convention. The franchisor may conduct periodic training activities like seminars, conferences etc. as a part of an ongoing support program. Sometimes you may also invite to international forums for exchanging ideas on the sector and RE/MAX services. Attendance to these events is optional.
What Should I Spend and Earn?
The initial investment and ongoing fees depend on the dream of you. If you want a big business from the beginning, you should start with a higher budget. Instead, if you are not a risk-taking person, you may start with a low investment.
Accordingly, your initial franchise fee differentiates. It changes between $17,500- $37,500. The total initial investment may change between $40,000- $300,000. Other than franchise fee, this includes office set-up; exterior office signage; furniture, fixtures, and equipment; inventory and supplies; training fees and expenses; opening day costs and some additional funds.
Other RE/MAX agent fees include the periodic payments and also case-based one time payments like transfer fee, renewal fee etc.
For instance, for each sales associate in the Office, you are expected to pay the monthly ongoing fee. Since January 2018, it is $130,5. You should also pay for advertising fund. It is $95 per month and may increase once in a year. The increase is not exceeding $30 per month.
1% of the gross monthly real estate commissions paid as a broker fee. Annual dues due to each sales associate affiliated with the office cost approximately $400. Additionally, insurance, additional training etc. are other costs.
The financial assistance is available according to conditions. This excludes the newcomers. A franchisee renewing an existing franchise may be financed by the franchisor. Other than this, the Company does not offer any other kind of financial assistance and not receive any fee from any other financing source. RE/MAX franchise profits highly depend on the retail market of the location you are serving.