RE/MAX FDD Item 12 is the section of the Franchise Disclosure Document that addresses the territory rights and restrictions for RE/MAX regional franchisees and individual office franchisees. As one of the largest real estate franchise networks in the world with over 140,000 agents in more than 9,000 offices across 110+ countries, RE/MAX’s territory structure operates differently than most franchise systems. At Lopes Law LLC, we review territory provisions carefully because the real estate franchise model involves distinct layers of territorial rights that can create both opportunities and conflicts.

This guide breaks down what RE/MAX discloses in Item 12, explains the multi-layered territory structure, and identifies the critical territorial provisions every prospective buyer should evaluate before investing in a RE/MAX franchise.

What Is FDD Item 12 and Why Does It Matter for RE/MAX?

Item 12 of any Franchise Disclosure Document is titled “Territory.” Required by the FTC Franchise Rule (16 C.F.R. Part 436), it must describe the territory granted to the franchisee, whether that territory is exclusive, what performance obligations are tied to the territory, and whether the franchisor reserves any rights within the territory. For RE/MAX, the territory provisions are particularly important because the franchise system operates on multiple levels with regional sub-franchisors granting individual office franchises.

How Does the RE/MAX Territory Structure Work?

RE/MAX operates a multi-tiered franchise model that distinguishes it from single-tier franchise systems:

• Regional level: RE/MAX LLC grants regional franchise rights to regional owners (sometimes called sub-franchisors or regional directors) who have the exclusive right to develop and support RE/MAX offices within a defined geographic region.
• Office level: Regional owners grant individual office franchise rights within their region. Each office franchise operates within a defined territory or area.
• Agent level: Individual agents are not franchisees. They are independent contractors affiliated with a specific RE/MAX office.

This multi-layered structure means that the territory provisions in the FDD depend heavily on whether you are acquiring a regional franchise or an individual office franchise. The scope, exclusivity, and protections differ significantly at each level.

Does RE/MAX Grant Exclusive Territory?

The answer depends on the franchise level and the specific agreement:

Regional franchisees typically receive exclusive rights to develop RE/MAX offices within their defined geographic region. No other regional franchisee can grant RE/MAX office franchises within that territory. However, RE/MAX LLC reserves certain rights, and the exclusivity may be conditioned on meeting development schedules and performance benchmarks.

Office franchisees may receive more limited territorial protections. While the regional owner may grant a defined territory, agents affiliated with that office are generally free to serve clients anywhere, and agents from other RE/MAX offices may also serve clients within the territory. In real estate, transactions follow the client and the property, not the office territory.

What Rights Does RE/MAX LLC Reserve Within the Territory?

RE/MAX LLC typically reserves certain rights even within a regional franchisee’s exclusive territory, including:

• Online and digital platforms: RE/MAX’s global website, mobile apps, and digital marketing platforms operate nationally and internationally without territorial restrictions.
• Referral network: The RE/MAX referral system operates across territorial boundaries, allowing agents from any office to receive referrals in any market.
• Commercial division: RE/MAX’s commercial real estate operations may operate under separate territorial arrangements.
• Special programs: RE/MAX may reserve the right to operate or authorize special programs, partnerships, or initiatives that cross territorial boundaries.
• Corporate-owned operations: RE/MAX may reserve the right to operate company-owned offices or teams in certain circumstances.

How Do Performance Requirements Affect Territory Rights?

RE/MAX typically ties territorial rights to performance benchmarks. For regional franchisees, this may include minimum targets for the number of offices opened, total agent count, or aggregate transaction volume within the region. For office franchisees, performance requirements may include maintaining a minimum number of affiliated agents.

Failure to meet these performance benchmarks can result in loss of exclusivity, reduction of territory, or even termination of the franchise agreement. This means that territory rights in a RE/MAX franchise are not permanent or unconditional. They must be earned and maintained through ongoing performance.

What Questions Should You Ask About RE/MAX Territory?

When evaluating a RE/MAX franchise opportunity, ask these territory-specific questions:

• How many RE/MAX offices already operate within or adjacent to the proposed territory? Saturation limits growth potential.
• What are the minimum performance requirements to maintain territory rights? Understand the development schedule and benchmarks.
• Can agents from neighboring offices actively recruit in my territory? In real estate, agent mobility is a practical concern.
• Does the territory include any restrictions on digital marketing or online lead generation? Digital leads often cross territorial boundaries.
• What happens to my territory if I do not meet performance benchmarks? Understand the consequences of underperformance.
• Are there any pending or planned changes to the territory structure? RE/MAX has periodically restructured regional arrangements.

Why Legal Review of Item 12 Is Essential Before Investing

Territory provisions in a real estate franchise are more complex than in most other franchise categories because of the multi-tiered structure and the nature of real estate transactions. A franchise attorney can evaluate whether the territorial rights provide meaningful protection for your investment, identify performance requirements that could lead to territory reduction, assess how the reserved rights affect your competitive position, and compare RE/MAX’s territorial structure to other real estate franchise systems like Keller Williams, Coldwell Banker, or Century 21.

At Lopes Law LLC, our flat-fee FDD validation review is $3,000 and covers all 23 items of the RE/MAX FDD. For additional context on franchise agreement provisions, read our analysis of franchise agreement red flags to watch for and our guide on what to expect from an FDD review. If you are an existing RE/MAX franchisee considering your options, learn about our franchise exit audit services.

Frequently Asked Questions About RE/MAX FDD Item 12

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Last updated: March 12, 2026