When is the Component One Continuing Franchise Fee due for a Remax franchise, and when is it considered late?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee.
The first component, the Component One Continuing Franchise Fee ("Component One Continuing Franchise Fee"), may be referred to simply as "Continuing Franchise Fee" on billing statements or invoices you receive. Under this component, you agree to pay us, on a monthly basis, $ per month for each Sales Associate (as defined in Subsection 6.J. below) in your Office during the previous calendar month
whether or not you actually collect management fees from your Sales Associates, as recommended below. The Component One Continuing Franchise Fee is due and will be considered late if not received by us by the 10th day of the month after the month the Office opens and by the 10th day of each month throughout the remai
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Component One Continuing Franchise Fee is due by the 10th day of the month after the office opens and by the 10th day of each month throughout the remainder of the term of the agreement. If the Component One Continuing Franchise Fee is not received by the 10th day of the month, it will be considered late.
Remax has the right to increase or decrease the amount of the Component One Continuing Franchise Fee once in any calendar year. If Remax increases the fee, the increase will not exceed 10% of the Component One Continuing Franchise Fee amount in effect at the time of any such increase. As of the Agreement Date, Remax anticipates that this fee may increase by at least $2.50 on July 1, 2026, and by at least $2.50 on the 1st day of July in each subsequent year of the Agreement.
Prospective Remax franchisees should be aware of these payment terms and ensure they have sufficient funds to cover the fees. They should also factor in potential increases to the Component One Continuing Franchise Fee when budgeting for their franchise. It is also important to note that failure to pay the fees on time may result in late charges and interest.