What are the conditions under which Remax may offer financing as a financial incentive to facilitate mergers or conversions (Item 10), and how does this relate to the franchisee's obligations regarding mergers and acquisitions as outlined in Item 9?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
petition covenants | Subsections 5.F. and 14.J. of Franchise Agreement | Item 17 | | x. Dispute resolution | Not Applicable | Not Applicable | | y. Owners/shareholders guarantee | Subsection 12.F. of Franchise Agreement and Guaranty and Assumption of Obligations attached to Franchise Agreement | Item 15 |
FINANCING
RE/MAX Regional offers financing to prospective franchisees for the initial franchise fee and, for renewing franchisees in good standing, the renewal franchise fee. In the past, we have offered—and we may continue to offer—financing as a financial incentive to facilitate mergers or conversions. In select cases in the future, we may also offer financing for acquisitions or other growth-related expenses.
If you wish to finance the initial franchise fee for a residential real estate office, the initial franchise fee will be $37,500 if your franchise is in a high-density area (as opposed to $35,000 if you pay it in one lump sum) or $19,000 if your franchise is in a low-density area (as opposed to $17,500 if you pay it in one lump sum). If you wish to finance the initial franchise fee for a commercial real estate office, the initial franchise fee will be $27,000 (as opposed to $25,000 if you pay it in one lump sum). A copy of the current form of Promissory Note for the initial franchise fee ("Promissory Note 1") is attached to this disclosure document as Exhibit B-1. Those who wish to finance this fee must pay at least 50% in cash as a down payment when the Franchise Agreement is signed. The balance of the initial franchise fee will be due in 12 equal monthly installments (however, if in the same calendar month that you sign the Franchise Agreement and pay the 50% down payment you pay the remaining promissory note balance in full, REMAX, LLC will waive the installment fee). The monthly installments will be automatically charged to a bank account that you provide to RE/MAX Regional. If we allow you to pay by credit card, you may be charged a credit card processing fee or surcharge.
If you wish to finance the renewal fee for a residential real estate office, your renewal fee will be $14,000 if your franchise is in a high-density area (as opposed to $12,500 if you pay it in one lump sum) or $7,000 if your franchise is in a low-density area (as opposed to $6,000 if you pay it in one lump sum). If you wish to finance the renewal fee for a commercial real estate office, the renewal fee will be $10,250 (as opposed to $9,000 if you pay it in one lump sum).
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional may offer financing as a financial incentive to facilitate mergers or conversions. They may also offer financing for acquisitions or other growth-related expenses in select cases. The amount of financing can cover up to 100% of associated costs. The FDD states that the interest rate for financing acquisition or growth-related expenses typically ranges from 5% to 10% over a term of 36 to 60 months, although interest may be waived if certain growth goals are met and the franchisee complies with all terms and conditions.
If a Remax franchisee wishes to finance the initial franchise fee for a residential real estate office, the initial franchise fee will be $37,500 in a high-density area (compared to $35,000 if paid in a lump sum) or $19,000 in a low-density area (compared to $17,500 if paid in a lump sum). For a commercial real estate office, the initial franchise fee will be $27,000 when financed (compared to $25,000 if paid in a lump sum). At least 50% of the initial franchise fee must be paid in cash as a down payment, with the balance due in 12 equal monthly installments.
Regarding a franchisee's obligations during a transfer or assignment of the agreement, Remax will not unreasonably withhold consent if the franchisee or owners demonstrate that the transferees or assignees have sufficient business experience, aptitude, qualifications, and financial resources to operate the office and meet Remax's criteria for ownership. The franchisee and owners must be in compliance with the terms of the Franchise Agreement and any other agreements with Remax. All amounts owed to Remax must be paid, including any unpaid balance of promissory notes and interest. Proposed transfer documents must be submitted for review and approval at least 30 days prior to the transfer date, and the transferee must meet Remax's standards for new franchisees, including financial capacity, skills, and integrity.