As a Remax franchise transferee, is Remax involved in determining or reviewing the appropriateness of the purchase price I negotiate with the selling franchisee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
It is up to you and the selling franchisee to negotiate and determine the purchase price for the Office (and Team Offices, if any) which may include some or all of the items listed in the above chart. We will not necessarily review or comment on the sufficiency or appropriateness of the purchase price to be paid by you. To the extent that any of the items listed above are not included in the purchase price, you may need to incur these costs in addition to the purchase price. If you open any Team Office(s) subsequent to the transfer, then the items listed in the above chart will apply for each Team Office (see footnote 12 above).
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 43–47)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax does not get involved in the negotiation or determination of the purchase price between a selling franchisee and a transferee. The FDD states that it is up to the buyer and seller to agree on a price for the office, which may include items listed in Item 7. Remax will not necessarily review or comment on whether the agreed-upon purchase price is appropriate or sufficient.
This means that as a prospective Remax franchisee looking to acquire an existing franchise, you are responsible for conducting your own due diligence and negotiating a fair price with the seller. Remax does not provide any valuation services or oversight in this process. It is crucial to seek independent professional advice to assess the value of the franchise you are considering purchasing.
Furthermore, the FDD notes that if certain items are not included in the negotiated purchase price with the selling franchisee, the new franchisee may need to incur additional costs to acquire them. Therefore, it is important to carefully review what is included in the sale and what additional investments might be necessary to operate the Remax franchise effectively after the transfer.