Robert Kline, who started the franchise in 2000 and grew the business through acquisitions, said his decision to close was made after a particularly rough patch in December, when it became clear he no longer could afford to pay overhead expenses.

"The market has impacted us tremendously, and it was something we basically had no control over," Kline said. "We cannot any longer invest our personal resources into the business."

The closure puts 350 agents and 20 other employees out of work.

But Kline's attorney, Dax Watson, said owners are mulling options for reopening the franchise on a smaller scale.

"It appears there may be some opportunity to save Re/Max 2000 and work through some of these issues," Watson said.

He said Dave Liniger, co-founder and chairman of Denver-based Re/Max International Inc., flew to Phoenix to meet with Kline to discuss options. He said Liniger and other employees from Re/Max's corporate headquarters plan to meet Wednesday for further discussion.

Agent Bill Dowdy said when he found out about the closure from his business partner on Sunday, the news "was sort of a shock."

He said he planned to keep his license within Re/Max, noting that the real-estate industry likely will continue to struggle in the coming year.

"I just feel like we need to accept the way it is, and then we need to have a business plan that deals with this very tight market that we have," he said.

Information from: The Arizona Republic, http://www.azcentral.com