Re/Max Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
RE/MAX is a real-estate brokerage franchise where offices recruit and support commission-earning agents. Franchisees run independent brokerages competing on agent recruitment and productivity, paying the franchisor a share of gross commissions.
FranchiseVerdict summary · 2026
A RE/MAX franchise requires a total initial investment of $45K – $266K, including a $18K – $38K franchise fee and an ongoing 1.0% royalty[2]. This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. SBA 7(a) loans show a 14.2% charge-off rate across 306 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $45K – $266K
- 26th pct Real Estate
- Avg gross sales
- N/A
- Royalty
- 1.0%
- 0th pct Real Estate
- Units
- 3,150
- 88th pct Real Estate
- SBA charge-off
- 14.2%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Real Estate · color = vs category peers
Green = favorable by >10% vs Real Estate avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $45K – $266K including a $18K franchise fee, 1.0% ongoing royalty.
- RETURNSThis franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better). SBA loan charge-off rate of 14.2% across 306 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- DECLINESystem contracting at -9.4% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- RE/MAX, LLC
- Parent company
- RMCO, LLC
- Ultimate parent
- RE/MAX Holdings, Inc.
- Predecessor
- RE/MAX International, Inc.
- Prior franchisor entity
- Incorporated in
- Delaware
- HQ
- 5075 South Syracuse Street, Denver, Colorado 80237-2712
- Auditor
- Ernst & Young LLP
- Audited financials
- Franchisor revenue
- $307.7M
- vs $325.7M prior year
Overview
About
- CEO
- Erik Carlson
- Headquarters
- CO
- Founded
- 1974
- FDD year
- 2025
- States available
- 51
Can you afford it, and what does the money buy?
Entry cost runs 29% below the typical real estate franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown10 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $18K | $38K | |
| Office set-up/improvementsnot refundable | $4K | $92K | |
| Exterior office signagenot refundable | $500 | $10K | |
| Furniture, fixtures and equipmentnot refundable | $2K | $20K | |
| Computer Systemnot refundable | $4K | $26K | |
| Inventory and suppliesnot refundable | $500 | $4K | |
| Education fees and expensesnot refundable | $4K | $9K | |
| Insurancenot refundable | $2K | $6K | |
| Licenses, Grand Opening, Utilities, Security Deposit, and other miscellaneous opening costsnot refundable | $1K | $11K | |
| Additional funds - 3 monthsnot refundable | $10K | $50K | |
| Total initial investment | $45K | $266K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $45K – $266K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $50K
- Middle of category vs category
- Franchise fee
- $18K – $38K
- Top 40% of category vs category
- Royalty
- 1.0%
- typical 6–8%
- Ad fund
- $128
- Total fee load
- 16.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 1.0% |
| Technology fee | $15 |
| Transfer fee | $3K |
| Renewal fee | $13K |
| Inventory (initial) | $500 – $4K |
| Total fee load | 16.0% of rev |
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
RE/MAX makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. The return models need a revenue figure to start from, and the operating costs that turn gross sales into a profit are in no FDD. Enter your own and the calculator runs on your assumptions — nothing here is modelled until you do.
Returns model · single-unit ROIC
What would one RE/MAX unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for annual revenue, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
No financial performance representation
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that.
Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Fee burden
Total ongoing fee load of 16.0% — above the Real Estate average of 9.3%.
Disclosure
This franchisor makes no financial performance representation in Item 19 of its FDD. Item 19 is voluntary under the FTC Franchise Rule, and this filing states that it makes none, so no revenue or earnings figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Operator retention
System contracting at -9.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Real Estate averages
How Re/Max Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 3,150
- Opened
- 125
- Last reporting year
- Closed
- 147
- Terminated
- 101
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 92
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.9%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -9.4%
- Net unit change over 3 years
- 3-yr CAGR
- -9.4%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 180
- Closed (3yr)
- 83
- Terminated (3yr)
- 59
- Non-renewed (3yr)
- 107
- Transfers (3yr)
- 95
- Reacquired (3yr)
- 0
- Franchisor bought back
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 43 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Indiana
- Wisconsin
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 306
- Loan volume
- $128.0M
- Median loan
- $100K
- 50th percentile
- Charge-off rate
- 14.2%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.8%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 109
- Defaults
- 34
- Typical loan rate
- 6.1%
- avg rate to borrowers
- Franchised industry avg
- 14.8%
- brand beats franchise avg ↓
- Jobs supported
- 1,574
- 4.3 per loan
- Lender concentration
- 8%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Franchise vs independent — in offices of real estate agents and brokers, franchised businesses charge off at 14.8% vs 29.6% for independents — franchising is associated with 50% lower SBA default risk in this category.
Vintage analysis
Re/Max charge-off rate by loan vintage
Top lenders financing Re/Max franchisees
Showing 3 of 109 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Re/Max's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 23-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
What could kill this investment?
SBA loans charge off at 14.2% — 11% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Parent-level financials show negative equity -$67.8M and financial_distress flagged, plus 13 litigation matters dominated by the nationwide buyer-broker antitrust litigation (RE/MAX settled for $55M). No Item 19 disclosed. Litigation is heavy but system is large (3,150 units) and net income positive $11.3M; equity is parent-level so not brand-penalized.
Litigation (Item 3)
No litigation required to be disclosed in Item 3
Largest disclosed settlement: $22,565
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Ernst & Young LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Franchisor financials (RE/MAX, LLC consolidated): FY2024 total revenue $307.685M, net income $11.293M; FY2023 total revenue $325.671M, net loss $(61.229)M; FY2022 total revenue $353.386M, net income $20.714M. Total member's equity was negative in both 2023 (-$79.065M) and 2024 (-$67.773M), driven by historical distributions/debt rather than operating insolvency; no going-concern qualification was issued by the auditor (KPMG).
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: Yes
Score breakdown · what drove the 55 / 100 verdict
- 01HIGH13 litigation matters incl. $55M antitrust settlement (Moehrl/Burnett/Nosalek)
- 02MINORParent-level negative equity -$67,773,000 (judge on operations)
- 03MINORNo Item 19 disclosure
- 04MINORNegative net unit growth -9.4%
- 05MINOROffset: $307.7M revenue, $11.3M net income
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 16.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Territory type | Address-only |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Territory population | 100,000 |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| RoFR response window | 30 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | Colorado |
| Litigation count | 6 |
View Item 3 litigation summary
No litigation required to be disclosed in Item 3
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Time to open
- 2 mo
- From signing to launch
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
392 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
RE/MAX · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a RE/MAX franchise?
The total investment to open a RE/MAX franchise ranges from $45K – $266K, with an initial franchise fee of $18K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do RE/MAX franchise owners earn?
RE/MAX makes no financial performance representation in Item 19 of its FDD - a voluntary item under the FTC Franchise Rule - so no unit revenue figures are disclosed. Declining to publish one is lawful and is not evidence of how the outlets perform. It does mean that less about this brand can be verified from its filing, and the FranchiseVerdict grade - an editorial assessment, not investment advice - reflects that. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
What is Item 19 in the RE/MAX FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the RE/MAX FDD and qualifies whose outlets they describe.
What is RE/MAX's franchise failure rate?
Based on SBA 7(a) loan data, RE/MAX has a charge-off rate of 14.2% across 306 loans, meaning 14.2% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many RE/MAX franchise locations are there?
As of their most recent FDD filing, RE/MAX has 3,150 total units in the United States, including 3,150 franchised units and 0 company-owned units. 125 new units were opened in the latest reporting year.
Is RE/MAX a good franchise to buy?
FranchiseVerdict rates RE/MAX as a B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.