Is compliance with the existing franchise agreement a condition for Remax approving a transfer or assignment?

According to Remax's 2025 Franchise Disclosure Document, compliance with the existing franchise agreement is indeed a condition for Remax to approve a transfer or assignment of the franchise. Specifically, the franchisee and their Owners must be in compliance with the terms and conditions of the existing agreement, as well as any other franchise or agreements they may have with Remax. This requirement ensures that the franchise is in good standing before it can be transferred to a new owner.

In addition to compliance with the franchise agreement, Remax may require other conditions to be met before approving a transfer. These include paying any outstanding amounts owed to Remax, submitting all proposed transfer documents for review and approval at least 30 days prior to the proposed transfer date, and providing current financial statements and other documents of the proposed transferee(s) or assignee(s). The proposed transferee(s) or assignee(s) must also meet Remax's current standards for new franchisees, including those relating to experience, education, licensing, background, financial capacity, skills, and integrity.

These conditions are in place to protect the Remax brand and ensure that any new franchisee is qualified to operate the business successfully. The transferee(s) or assignee(s) must also execute a form authorizing Remax to obtain a consumer report and conduct a credit and background check. Furthermore, the transferee(s) or assignee(s) may be required to attend and complete the RE/MAX Initial Education Program. If the lease requires it, the landlord of the premises must consent to the assignment of the lease to the transferee(s) or assignee(s).

Overall, these requirements highlight the importance Remax places on maintaining the quality and reputation of its franchise system. A prospective franchisee should carefully review all the conditions for transfer or assignment and ensure they are able to meet them before considering selling their franchise. This also means keeping the franchise in good standing by adhering to the franchise agreement terms.