Franchisel.com — FDD Diligence Memo
RE/MAX
Generated 2026-04-06 · 2024 FDD · Government-filed source
RE/MAX
2024 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Econ Burden
8
Red Flags & Key Signals
Net unit loss of -42 in reporting period. Declining networks may signal franchisee dissatisfaction or weak economics.
Franchisor chose not to include a Financial Performance Representation. Item 19 is voluntary per FTC rules. This is not automatically a negative signal — it means economics cannot be scored from the disclosure.
Review Item 3 narrative for claim types. Franchisee-vs-franchisor suits are a stronger red flag than third-party disputes.
Investment Overview
Items 5, 6, 7Total investment range: $40,000 – $210,000. Initial fee: $17,500. Royalty: Flat fee. Marketing fund: 1%.
Item 19 — Revenue
Item 19 — not included in filed FDD (voluntary per FTC Franchise Rule)Economics not rated — Item 19 not available.
Not DisclosedThis franchisor chose not to include a Financial Performance Representation. Item 19 is voluntary per FTC rules. This does not indicate bad economics — it means revenue projections cannot be sourced from the disclosure document.
Item 20 — System Health
Item 20 — 2024 FDDSystem contracting — net -42 units in reporting period.
↓ Contracting42 more units closed or left the system than opened. Closure/transfer rate of 2% is within normal range.
Total Units
9,008
Net Growth
-42
Turnover
2%
Year-over-Year Trends
2024 FDDOpened
+180
Closed
-222
Net
-42
Turnover rate: 2%
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2024 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19No Item 19
This franchisor did not include a Financial Performance Representation in their FDD. Item 19 is voluntary per FTC rules — absence does not indicate poor economics.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
222 units closed in the most recent FDD period. Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?
Look for: Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?
Look for: Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Data sources: 2024 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: filed FDD. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.