What is a franchise? A franchise is a legal and commercial relationship (agreement or license) between two parties which gives a person or group of people (the franchisee) the rights to market a product or service using the trademark of another business (the franchisor). Each franchise business has been authorized by a parent company, or franchisor, to sell their goods and/or services either in a retail space or a designated geographical area. The franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods or services supplied by the franchisor or that meet the franchisor’s quality standards.
On the TOP 10 Top Global Franchises for 2007 of American magazine EntrepreneurRE/MAX franchise is ranked as the best real estate franchise, positioned on the 6th place. The first place is taken by Subway (1st), McDonald’s (4th), and behind them are positioned much more known and expensive InterContinental, Burger King, Hilton Hotels & Resorts etc.
Also, RE/MAX has taken place in the Howard Rothman’s book "50 Companies That Changed the World", together with Microsoft, Ford, Apple, McDonald’s, FedEx, Nike, Sony, Coca-Cola, The Walt Disney Company and many others.
The popularity of the franchise business model has to do with its proven track record of success and ease in becoming a business owner. Independent, non-franchise businesses have a much higher likelihood of failure within their first year than franchises. One of the most compelling reasons is that, in a franchise operation, the franchisor provides business expertise (marketing and advertising plans, management guidance, financing assistance, site location, administrative support and training) that otherwise would not be available to businesses starting from scratch. Franchisees bring to the relationship entrepreneurial spirit and drive, which may not be enough to keep a business afloat if the franchisee lacks significant business acumen. Franchising extends beyond the right to use a well-branded business name - in this particular case RE/MAX - and sell a franchisor’s services or products.
Comparison of rates of success in business
Other independent business
After 1st year of activity
After 5th year of activity
After 10th year of activity
Source: American Chamber of Commerce
RE/MAX - The History Story Upset with the bad name that poorly trained novices and casual part-timers were giving the real estate profession, Dave Liniger in 1973 started a real estate company in Denver that would limit itself to hiring only full-time, experienced professionals. He wanted a company where homebuyers and sellers could walk into any office in any market, confident they would receive the level of professional service that a transaction of such magnitude demands. RE/MAX International, Inc. is today a rapidly growing network of franchised real estate offices across the world. Every one of its open offices is independently owned and operated. RE/MAX Europe was incorporated in 1994 for the purpose of granting regional franchise rights within Europe and Israel.
RE/MAX in Croatia During 2008 in Zagreb RE/MAX Croatia office was opened and at this moment is spreading their business in Zagreb and along Adriatic coats which actualization is out of question in recent times. Our goal is to spread RE/MAX real estate sales representatives network in Croatia and accomplish excellent service quality of sales network which will at the same time guarantee product quality i.e. real estate on highest possible level without lapsing for Europe. With this on domestic, unstable market only the best will survive and therefore generate extra profits thanks to established system and promotion and sales organization which RE/MAX offers in his franchise. If you have a dream of building your own successful real estate company using the best systems and support tools in the industry, you owe it to yourself to take a close look at RE/MAX. Contact RE/MAX today! What are you waiting for? You’ll be glad you did. Make the next step in your career the best you’ve ever made. Step up to RE/MAX ownership and achieve your dreams.
Office Franchise When a real estate broker buys a RE/MAX franchise, he or she then establishes an office by recruiting full-time top agents in the market. Experienced agents thrive in the RE/MAX system, surrounded by other top producers and given the freedom to run their business with a minimum of corporate restrictions.
What is the interest of franchisor?
Geographic expansion of the Network
Increasing of market presence and competitiveness
Rationalization of investments and risks
Development of educatinal, training and exploring programs, counseling programs and other ways of information exchange regarding franchise
To become a leader on the real property market in Republic of Croatia expanding the Network of RE/MAX offices - real estate agencies
No monopoly! - each office is independently owned and operated. Organization acts as an association.