What costs may Remax financing cover as part of a large conversion or merger?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are acquiring RE/MAX franchise rights as part of a large conversion or merger, RE/MAX Regional may provide you with financing to offset opening costs and transitional expenses such as office signage, yard signs, promotional materials and office supplies. While the amount of the financing offered will depend on the scope of the conversion or merger, RE/MAX Regional anticipates that up to 100% of the associated conversion costs will be covered by such financing. A copy of the current form of promissory note for large mergers and conversions ("Promissory Note 3") is attached as Exhibit B-3.
Under Promissory Note 3, principal only payments (unless forgiven as provided below) will be due in equal annual installments throughout the term of the Franchise Agreement. If as of December 31 of each year—including the calendar year in which the note is executed—you are not in default of the financial obligations of Section 6 of the Franchise Agreement, Promissory Note 3 provides that RE/MAX Regional will forgive the annual payment due that year.
Source: Item 10 — FINANCING (FDD pages 56–59)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional may offer financing to franchisees acquiring Remax franchise rights as part of a large conversion or merger. This financing is intended to offset opening costs and transitional expenses. Specifically, the financing can cover expenses such as office signage, yard signs, promotional materials, and office supplies.
The amount of financing offered by Remax will depend on the scope of the conversion or merger. Remax Regional anticipates that the financing may cover up to 100% of the associated conversion costs. The terms of this financing are detailed in a promissory note, specifically "Promissory Note 3," which is included as an exhibit to the FDD.
Under the terms of Promissory Note 3, franchisees will make principal-only payments in equal annual installments throughout the term of the Franchise Agreement. However, Remax Regional may forgive the annual payment due each year if the franchisee is not in default of their financial obligations as outlined in Section 6 of the Franchise Agreement as of December 31 of that year, including the year the note was executed. This forgiveness clause provides a significant incentive for franchisees to maintain good financial standing with Remax.