What financial statements must a Remax franchisee provide, and what information must they contain?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
licable late charges and interest, if we offer that alternative to termination.
c. Reporting Terminated Sales Associates.
Immediately upon a Sales Associate's termination, you must furnish us with a status change form (or such other form as we may designate) reflecting the termination. If you fail to timely report the termination of a Sales Associate, you will be billed for, and required to pay, Monthly Ongoing Fees and Marketing Fund fees for each month the Sales Associate was not in your Office until the date you report the Sales Associate terminated.
(2) Financial Statements.
Within 60 days after the close of your fiscal year for federal income tax purposes, a financial statement containing a balance sheet and results of operations, including gross sales and revenues for such year; and
(3) Other Financial Reports.
Such other financial reports as we may prescribe from time to time. All financial reports, financial statements and related information shall be on forms prescribed or approved by us and shall be verified and signed by you and your chief financial officer (or other individual of comparable position). If you are in default of any provision of this Agreement, we reserve the right to require you to provide financial reports, financial statements, and related information not only for Franchisee and the Franchise, but also for the Owners, personally, and for any other businesses owned in whole or in part by some or all of the Owners. If you are operating an ancillary business without our permission, we will have the right to audit or review the financial records of that business upon request.
C. OTHER INFORMATION.
All reports and records or other information including but not limited to client information supplied to REMAX, LLC or us pursuant to Section 10 shall be considered our or REMAX, LLC's property and no such information shall be considered confidential. Subject to state laws that may be applicable, REMAX, LLC and REMAX Regional shall have the right to use, share, aggregate with other franchise information, disclose and sell all information (aggregated or not), including client information, derived from what you supply for our own business purposes and to profit from that information without providing any compensation to you.
11. INSPECTIONS AND AUDITS.
A. ACCESS TO ACCOUNTING RECORDS.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees must submit a financial statement within 60 days after the close of their fiscal year for federal income tax purposes. This statement must include a balance sheet and results of operations, detailing gross sales and revenues for that year. These financial reports must be on forms prescribed or approved by Remax and must be verified and signed by the franchisee and their chief financial officer or an equivalent position.
Remax also has the right to request other financial reports as they deem necessary. If a franchisee defaults on any agreement provision, Remax can require financial reports and information for the franchisee, the franchise, the owners personally, and any other businesses owned by the owners. If a franchisee operates an unapproved ancillary business, Remax has the right to audit or review the financial records of that business upon request.
Additionally, when renewing their franchise agreement, Remax requires franchisees to provide a copy of their current financial statement, including a balance sheet and results of operations, reflecting gross sales and revenues, along with any other financial reports or information Remax requires. Remax, LLC also has independent access to information generated and stored on MAX/Center and the BoldTrail Back Office Software, including information uploaded or transferred to these platforms and data stored in the integrated Intuit QuickBooks Online account. This access allows Remax, LLC to monitor compliance, gather data for analysis, and improve the Remax system.