New Era: RE/MAX Continues to Sell Franchises – Virtually

Adam Elias, Owner of RE/MAX Celebrations in East Windsor, New Jersey, is a self-starting entrepreneur who didn’t let the pandemic keep him from realizing his dream of owning and operating a fourth business. A real estate attorney by trade, one of Elias’s top referral sources approached him looking for someone to invest in a new RE/MAX brokerage.

Having already owned a law firm, title agency and physical therapy clinic with his wife, Elias was eager to start another venture – this time with RE/MAX. Elias submitted an inquiry online and was contacted within two days.

The day before he was ready to sign on the dotted line, New Jersey entered into an economic shutdown to slow the spread of COVID-19.

“It was pretty scary,” Elias says. “The phone stopped ringing and we were wondering if this was really a good time to start a business. At the same time, we knew we had to find the opportunity in a moment of crisis. We looked at it as a chance to find agents who may not be happy with their current situation or who may be looking for a career change as a result of the economic shifts brought on by the pandemic.”

Elias moved forward with the digital credit check and virtual signing of Franchise Disclosure Documents, and during the two-week period those materials were being reviewed, he learned more about Motto Mortgage, the second member of the RE/MAX Holdings, Inc. family of brands, and their unique mortgage brokerage franchise model.

“The ‘mortgage brokerage in a box’ model Motto Mortgage uses really appealed to me as I started learning more about this ancillary service,” Elias says. “It seemed like a smart idea to complement my RE/MAX office and I jumped at the opportunity to launch both of these ventures together.”

By June, Elias opened RE/MAX Celebrations, and in August he finalized the paperwork for his Motto Mortgage business.

“One thing I love about RE/MAX is that we’re home to the full-time agent,” he says. “That’s why we’re the best in the business. I’m not looking for people to kick back and hang their license here. I’m looking for driven agents who will actively contribute and build the business with me.”

According to Peter Luft, RE/MAX Vice President of Franchise Sales, RE/MAX pivoted to virtual franchise sales to make stories like Adam Elias’s a reality. Here’s how:

1.     RE/MAX Communicated Often

RE/MAX immediately began communicating with intention both internally and externally at the onset of the pandemic. Leading the charge by offering daily webinars via Zoom and Facebook Live, the franchise development team created all kinds of opportunities to connect virtually to company leaders, trainers and the network. All of these actions created a greater sense of community.

“I was on the phone with Greg from the RE/MAX Franchise Sales team almost every day,” Elias says. “Getting set up over the phone was actually really smooth, as everyone was more readily available to answer calls during the day.”

2.     The Franchisor Had Confidence in the Power of Remote Capabilities

It’s possible to create rapport, trust and comradery – three key ingredients of a successful business relationship – remotely, even, even in a pandemic. Real estate is a relationship business and whether it’s buying or selling, recruiting agents, awarding a new franchise or facilitating a complex merger/acquisition, it can all truly be done without face-to-face meetings and handshakes.

“At an established brand like RE/MAX, we and our franchisees have instant access to state-of-the-art systems, services, training, technology, marketing and a whole host of other things as part of a franchise network,” says Luft. “With a network spanning across 110 countries and territories, meaningful virtual interactions are the lifeblood of this company.”

3.     RE/MAX Recognized that Instability Provides Opportunity

RE/MAX is home to top-producing, full-time agents. Agents or brokerage owners who operated under a different brand may find that being part-time isn’t suitable in this new ultra-competitive environment. It’s important to recognize that now could be the ideal time to start conversations about potential mergers or acquisitions. Significant market change, stimulated by the pandemic, may have some brokerage owners looking for an exit strategy. Couple that with owners who are thirsty for growth and interested in expanding and one could see a sizable growth in market share.

“We are focusing on people who may be looking to go out on their own and find a new way to support themselves at a time when the traditional job seems unstable,” Elias says.

“RE/MAX is constantly looking at all angles for growth opportunities,” adds Luft. “Whether you’re a brokerage owner considering expanding your business, looking for growth through a partnership or even considering an exit strategy, RE/MAX can support various options. You never know what you might discover by being open minded and seeing where it leads.” 

Entire Region Sells Virtually

The pandemic has also pushed the global industry to adopt and embrace a variety of RE/MAX technology tools to facilitate both transactions and digital franchise sales. Don Ha purchased the RE/MAX New Zealand region entirely over Zoom at the height of shelter-in-place restrictions on March 31, 2020.

“To grow this wonderful brand and lead our New Zealand network is a once-in-a-lifetime opportunity,” says Ha, a former Broker/Owner with RE/MAX Revolution in New Zealand. “It also fills me with immense joy to contribute to the RE/MAX legacy.”

Looking ahead to what’s next for the RE/MAX franchise sales team, Luft acknowledges, “Face-to-face engagement will still always be part of the sales process, but much more is able to be done virtually.”

He adds, “The pandemic forced everyone to embrace Zoom or similar technology for most personal, business and social engagements, which allowed the sales process to move forward much more efficiently, and the time frames to be compressed.”

Sustained Growth

From a single office that opened in 1973 in Denver, Colorado, RE/MAX has grown into a global real estate network with more than 130,000 sales associates in more than 110 countries and territories. How has RE/MAX grown from one office to well over 8,000 worldwide? One answer is the franchise business model.

According to the International Franchise Association (IFA), in addition to franchising, there are two other popular methods by which businesses expand their market and distribution channels: distributorship and licensing. While there are commonalities across all three business models, the one unique to franchising – and RE/MAX – is that franchisees who choose to build their businesses with RE/MAX are empowered by the latest technology tools, guidance and progressive ideas for sustainable, entrepreneurial success.

Being a franchisor, RE/MAX must constantly expand its network across the U.S. – a task that traditionally requires a lot of face-to-face meetings and handshakes. But obviously, things have changed in the franchising business world since the onset of the COVID-19 pandemic. Shelter-in-place restrictions forced a new era upon the franchise development team at RE/MAX to master how to grow a business in uncertain times – something they’ve done before having weathered six recessions previously.

What factors entice an agent to become an owner?

“Real estate agents, especially high-performing ones like those affiliated with RE/MAX, can do very well for themselves by making a living off of transacting,” Luft says. “Although often lucrative, in order to generate an income, an agent is dependent on making that sale time and time again.”

Adds Luft, “Building and owning a business can create a sustainable, consistent income without having to depend on those transactions and that is alluring to some entrepreneurs.”

This is not an offer of a franchise.  Any franchise offer is made only after a Franchise Disclosure Document has been delivered to you before the sale in compliance with applicable law. RE/MAX, LLC, 5075 S. Syracuse Street, Denver, CO 80237, 1.303.770-5531. 

Each Office is Independently Owned and Operated.