Can a Remax franchisee transfer their Franchise Agreement to another party without permission from Intuit?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
iving our approval. Such conditions may include some or all of the conditions set forth in Subsection 12.D. below, as we deem appropriate under the circumstances. "Controlling interest" shall be defined to be any interest greater than 50% ownership interest in a proprietorship, partnership or limited liability company or other type of business entity or, if a corporation, any interest greater than 50% of the equity and voting power of all issued and outstanding capital stock.
D. CONDITIONS FOR TRANSFER OR ASSIGNMENT OF AGREEMENT OR CONTROLLING INTEREST IN FRANCHISE OWNER.
If you or your Owners propose to transfer or assign this Agreement, the Franchise, the assets of the Franchise or Office or a controlling interest (as defined above), we will not unreasonably withhold our consent provided you or your Owners, as appropriate, submit to us in connection with the request for our consent such financial and other information we prescribe demonstrating that the transferee(s) or assignee(s) have sufficient business experience, aptitude, qualifications and financial resources in our judgment to operate the Office and that they otherwise meet our criteria for ownership of a RE/MAX franchise. Because we have historically placed great value on developing business relationships with, and have relied on the personal skills of, individual franchise owners, we have generally permitted transfers or assignments only to individuals or entities closely owned or held by such individuals. In addition, our franchise agreements prohibit, and we have traditionally refused to permit, franchisees from engaging in competitive businesses. Moreover, we have historically declined transfers or assignments to competitors or entities controlled by or directly or indirectly affiliated with competitors or organizations in which conflicts of interest may arise, or for which their RE/MAX real estate office will not be their principal focus. Accordingly, it shall not be deemed unreasonable for us, and we expressly reserve the right; (i) to withhold our consent to proposed transfers or assignments to institutions (whether held publicly or privately) including, by way of example only, banking or other financial institutions, mutual fund companies and insurance companies, mortgage companies and title companies; and (ii) to withhold our consent to transfers or assignments to individuals or entities offering products or services that directly or indirectly compete with the products or services offered by RE/MAX offices, REMAX Regional, or REMAX, LLC, or that are designed to bolster other business activities as opposed to focusing primarily on the RE/MAX real estate brokerage business, including without limitation, real estate, mortgage, title, insurance, relocation or franchising services.
In addition, we may require that any or all of the following conditions be met before or at the time of such assignment or transfer:
- (1) you and your Owners must be in compliance with the terms and conditions of this Agreement and any other franchise or other agreements you or your Owners may have with us;
- (2) you must pay any amounts owed to us or REMAX, LLC which are unpaid, including the entire unpaid balance of any promissory note with us and any interest due on such note;
- (3) at least 30 days prior to the date of the proposed transfer, you must submit to us for our review and prior approval all proposed transfer or assignment documents, including any purchase and sale agreements to be executed in connection with such transfer or assignment, which documents must be acceptable to us;
- (4) you must submit to us current, accurate financial statements and other documents of the proposed transferee(s) or assignee(s) sufficient to enable us to determine and to either approve or disapprove, in our sole discretion, the character, creditworthiness, business experience, professional credentials and ethical background of the proposed transferee(s) or assignee(s);
- (5) the transferee(s) or assignee(s) must meet our then current subjective and objective standards for new franchisees, including, if then applicable, those relating to relevant experience, education and licensing, background and past record of compliance with laws, financial capacity, skills, integrity and other qualities of character. The transferee(s) or assignee(s) must also execute a form authorizing REMAX Regional or REMAX, LLC to obtain a consumer report and to conduct a credit and background check;
- (6) the transferee(s) or assignee(s), if appropriate as determined by us, must agree to attend and complete to our satisfaction the RE/MAX Initial Education Program then being offered by us;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, a franchisee cannot transfer their Franchise Agreement without the consent of Remax. Remax will not unreasonably withhold consent to a transfer if the franchisee submits financial and other information demonstrating that the proposed transferee has sufficient business experience, aptitude, qualifications, and financial resources to operate the office, and that they otherwise meet Remax's criteria for ownership. Remax has historically valued business relationships with individual franchise owners and has generally permitted transfers only to individuals or entities closely owned or held by such individuals.
Remax franchise agreements prohibit franchisees from engaging in competitive businesses, and Remax has traditionally declined transfers to competitors or entities controlled by or affiliated with competitors, or organizations in which conflicts of interest may arise, or for which their Remax real estate office will not be their principal focus. Remax reserves the right to withhold consent to proposed transfers to institutions such as banking or financial institutions, mutual fund companies, insurance companies, mortgage companies, and title companies, as well as to individuals or entities offering products or services that compete with those offered by Remax offices, REMAX Regional, or REMAX, LLC, or that are designed to bolster other business activities as opposed to focusing primarily on the Remax real estate brokerage business.
Before or at the time of assignment or transfer, Remax may require that the landlord of the premises consents to the assignment of the lease or sublease to the transferee, the franchisee pays a transfer fee of $2,500 plus any amounts necessary to cover other costs, and the transferee executes a new franchise agreement with Remax in the form then customarily used in the grant of franchises for Remax offices. The new franchise agreement may have different terms than the original agreement, including higher Monthly Ongoing Fees, Marketing Fund fees, Hot Air Balloon Fund fees (if applicable), Regional Development fees (if applicable), and Minimum Agent Counts. The transferee must also execute and deliver to Remax a transfer agreement, personal guaranty, and other required documents. The franchisee and their Owners must execute a transfer or assignment agreement, which may include post-transfer non-competition restrictions for the remaining term of the agreement, and provide a full general release and waiver.