What action is a Remax franchisee required to take to effect a transfer or assignment of the franchise agreement by Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
, banking or other financial institutions, mutual fund companies and insurance companies, mortgage companies and title companies; and (ii) to withhold our consent to transfers or assignments to individuals or entities offering products or services that directly or indirectly compete with the products or services offered by RE/MAX offices, REMAX Regional, or REMAX, LLC, or that are designed to bolster other business activities as opposed to focusing primarily on the RE/MAX real estate brokerage business, including without limitation, real estate, mortgage, title, insurance, relocation or franchising services.
In addition, we may require that any or all of the following conditions be met before or at the time of such assignment or transfer:
- (1) you and your Owners must be in compliance with the terms and conditions of this Agreement and any other franchise or other agreements you or your Owners may have with us;
- (2) you must pay any amounts owed to us or REMAX, LLC which are unpaid, including the entire unpaid balance of any promissory note with us and any interest due on such note;
- (3) at least 30 days prior to the date of the proposed transfer, you must submit to us for our review and prior approval all proposed transfer or assignment documents, including any purchase and sale agreements to be executed in connection with such transfer or assignment, which documents must be acceptable to us;
- (4) you must submit to us current, accurate financial statements and other documents of the proposed transferee(s) or assignee(s) sufficient to enable us to determine and to either approve or disapprove, in our sole discretion, the character, creditworthiness, business experience, professional credentials and ethical background of the proposed transferee(s) or assignee(s);
- (5) the transferee(s) or assignee(s) must meet our then current subjective and objective standards for new franchisees, including, if then applicable, those relating to relevant experience, education and licensing, background and past record of compliance with laws, financial capacity, skills, integrity and other qualities of character. The transferee(s) or assignee(s) must also execute a form authorizing REMAX Regional or REMAX, LLC to obtain a consumer report and to conduct a credit and background check;
- (6) the transferee(s) or assignee(s), if appropriate as determined by us, must agree to attend and complete to our satisfaction the RE/MAX Initial Education Program then being offered by us;
- (7) if your lease or sublease for the Premises requires it, the landlord of the Premises must have consented to the assignment of the lease or sublease of the Premises to the transferee(s) or assignee(s);
- (8) you must pay us a transfer fee equal to $2,500 plus any amounts necessary to cover other costs, such as administrative and legal expenses, we may incur in connection with such transfer or assignment (REMAX Regional's costs could be significantly higher than the transfer fee depending upon the nature and complexity of the transaction);
- (9) the transferee(s) or assignee(s) must execute a new franchise agreement with us in the form we are then customarily using in the grant of franchises for RE/MAX offices (including any transfer addendum then being used by us), which agreement and any transfer addendum shall supersede this Agreement and may have different terms than this Agreement, including, without limitation, higher Monthly Ongoing Fees, Marketing Fund fees, Hot Air Balloon Fund fees (if applicable), Regional Development fees (if applicable), and Minimum Agent Counts. The new franchise agreement shall provide, at REMAX Regional's discretion, for either a term coinciding with the remainder of the Term or a term consistent with the terms of franchise agreements granted at the time of transfer;
- (10) the transferee(s) or assignee(s) must execute and deliver to us a transfer agreement, personal guaranty and such other documents as we may require or deem important or desirable to the preservation and protection of our rights;
- (11) you and your Owners must execute a transfer or assignmen
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer or assign their franchise agreement, they must first seek approval from Remax. Remax will assess whether the proposed transferee or assignee meets their criteria for ownership, including sufficient business experience, aptitude, qualifications, and financial resources. Remax has historically favored transfers to individuals or entities closely held by individuals and has generally not permitted transfers to competitors or entities with potential conflicts of interest.
To initiate the transfer process, the franchisee must be in compliance with all agreements with Remax and pay any outstanding amounts owed to Remax, LLC, including any promissory notes and interest. At least 30 days before the proposed transfer date, the franchisee must submit all transfer documents, including purchase and sale agreements, for Remax's review and approval. The franchisee must also provide current financial statements and other documents of the proposed transferee or assignee to allow Remax to evaluate their character, creditworthiness, business experience, and ethical background.
The proposed transferee or assignee must meet Remax's current standards for new franchisees, including those related to experience, education, licensing, background, financial capacity, skills, and integrity. They must also authorize Remax Regional or Remax, LLC to obtain a consumer report and conduct credit and background checks. If required by Remax, the transferee or assignee must agree to attend and complete the RE/MAX Initial Education Program. Additionally, the landlord of the premises must consent to the assignment of the lease or sublease, if required by the lease agreement.
Finally, the franchisee must pay a transfer fee of $2,500, plus any additional costs incurred by Remax for administrative and legal expenses. The transferee or assignee must execute a new franchise agreement with Remax, which may have different terms than the original agreement, including higher fees and minimum agent counts. They must also execute a transfer agreement, personal guaranty, and any other documents required by Remax. The franchisee and their owners must execute a transfer or assignment agreement, which may include post-transfer non-competition restrictions and a full general release and waiver in the form required by Remax.