When is the Remax Document Preparation Fee due after billing?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
gent, a $1,000 Unreported Agent fee ("Unreported Agent fee") plus all Monthly Ongoing Fees, Annual Dues, and Marketing Fund fees for the period beginning on the earliest date, in our determination, that (a) the individual who is an Unreported Agent was licensed with your Office; or (b) the individual was an Unreported Agent as defined in Subsection 6.M. of this Agreement (such payments, collectively and whether ongoing or retroactive, "Unreported Agent Payments").
O. DOCUMENT PREPARATION FEE.
You agree to pay a document preparation fee ("Document Preparation Fee") ranging from $500 t
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee must pay the Document Preparation Fee within 10 days after billing. This fee, which ranges from $500 to $2,000, covers the administrative and other costs Remax incurs when preparing miscellaneous documents related to activities such as shareholder removal, contract extension, or multiple sets of renewal documents during the term or renewal of the agreement.
It is important to note that failure to pay the Document Preparation Fee can have serious consequences. According to the FDD, in the event of a default under the agreement, the Document Preparation Fee must be paid in full as part of the cure of any such default. This means that if a franchisee fails to meet their obligations under the franchise agreement, they will need to pay the Document Preparation Fee, in addition to any other outstanding amounts, in order to resolve the default and maintain their franchise.
Prospective Remax franchisees should be aware of this fee and factor it into their financial planning. They should also ensure that they understand the circumstances under which the fee may be charged and the consequences of failing to pay it on time. Understanding these details will help franchisees manage their finances effectively and avoid potential defaults under the franchise agreement.