The royalty rate of 1.0% is substantially lower than the typical 5.25-7.0% for real estate franchises—what services and support does this lower rate reflect compared to competing franchises?
#1
The technology fee of $15/month is approximately one-third the typical range for real estate franchises—what specific technology platforms and tools are included, and are there additional technology costs or requirements?
#2
With 7 cases where the franchisor was named as defendant and 4 cases where the franchisor was plaintiff, what are the primary subject matters of this litigation (e.g., franchise disputes, non-compete enforcement, intellectual property)?
#3
The system lost 227 net units (-5.89%) over the past year, with closures increasing from 176 to 246. What is driving this sustained unit decline, and what is management's strategy to reverse this trend?
#4
Of the 246 units closed in 2024, how many were franchisor-initiated terminations versus voluntary closures or non-renewals, and what are the primary reasons cited?
#5
The total potential term of 5 years is significantly shorter than the typical 10-20 years for this category—are renewal options available, and under what conditions can franchisees renew?
#6
Renewal requires meeting 9 conditions, which is above the typical 5-8. Can you provide the complete list of renewal conditions and clarify what 'subjective and objective standards' mean in practice?
#7
With no exclusive territory and no encroachment protection, what prevents RE/MAX from opening additional franchises or company-owned operations in your area?
#8
The transfer fee of $2,500 is below typical—are there additional fees, conditions, or approval requirements for transferring the franchise to another operator?
#9
Four litigation cases are currently pending. Can you provide details on the parties involved, subject matter, and expected timeline for resolution?
#10
What is the nature of the 1-year non-compete clause, and are there geographic limitations (the data shows 'N/A miles')—does it apply only within the non-exclusive territory or broadly?
#11
Given the transfer rate of 2.9% (above the typical 0.0-2.2%), what is driving the higher rate of franchisee transfers, and are there restrictions on who buyers can be?
#12
The franchise has a 10-day cure period for payment and reporting defaults but 30 days for other defaults—what specific behaviors trigger the 15 non-curable defaults that could result in immediate termination?
#13
The agreement requires personal guarantees from all owners and spouses/domestic partners. If the franchise fails or is terminated, what is the scope of franchisor's indemnification claims against personal assets?
#14
The renewal fee is $6,000—is this the only cost to renew, or are there additional fees, required renovations, technology upgrades, or other renewal expenses?
#15
With a 5-year initial term and 5-year total potential term, how many franchisees have successfully renewed beyond the initial term, and what percentage chose not to renew?
#16
What specific 'current subjective and objective standards' must franchisees meet for renewal, and how have these standards changed over the past 3-5 years?
#17
Are there any restrictions on the types of brokers or agents that can operate under a RE/MAX Integrated Regions franchise, and what is the minimum required agent count?
#18
The technology fee is the lowest in the category—compared to competing real estate franchises, what technology platforms, marketing tools, or data access are excluded from this fee?
#19
What is the breakdown of the 138 units that 'ceased other' in 2024, and what does this category encompass?
#20