What are the franchisee's obligations regarding compliance with the Remax system as outlined in Item 9, and how does Remax assist with this compliance through the assistance described in Item 11?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in agreement | Disclosure document item |
|---|---|---|
| a. Site selection and acquisition/lease | Subsections 2.A. and 2.C., Section 3, and Subsection 13.B.(1) of Franchise Agreement | Items 7, 11 and 12 |
| b. Pre-opening | Section 3 and Subsections 8.B., 8.D. and | Items 7 and 8 |
| purchases/leases | 8.L. of Franchise Agreement | |
| c. Site development and other pre-opening requirements | Section 3, Subsections 8.A., 8.B., 8.C., 8.D., 8.F., 8.G., 8.J. and Subsection 13.B.(2) of Franchise Agreement | Items 7, 11 and 12 |
| d. Initial and ongoing training | Subsections 8.G., 9.A., 9.D. |
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, while Item 11 details how Remax assists franchisees in meeting these obligations. Item 9 references several sections within the franchise agreement and other items within the disclosure document that cover various obligations. These obligations include site selection and acquisition/lease, pre-opening purchases/leases, site development and other pre-opening requirements, and initial and ongoing training.
Remax provides assistance to franchisees to ensure compliance with the Remax system. Remax may provide in-person or remote consultation and guidance relating to the Remax System at the franchisee's request and expense. They also supplement the Office Materials and system standards for Remax offices, and these modifications may require additional capital investment or higher operating costs for the franchisee. Remax encourages the use of its marks and system and maintains a national and international referral system. Franchisees can also attend regional conferences and annual conventions at their own expense to enhance the image of the Remax System and exchange ideas.
To facilitate reporting and communication, Remax requires franchisees to implement all systems, programs, and procedures that Remax establishes from time to time. These may include communication systems, accounting programs, data management systems, and brokerage back-office management software. Franchisees must also maintain a compatible computer system, which may require upgrades to software like Microsoft Windows or macOS, potentially costing between $140 to $690 per year per license. Remax also mandates monthly contributions to the Marketing Fund, although the fees may vary depending on the franchisee's location.
Remax also provides assistance before the office opens, including assistance in selecting the office location, which must be approved by Remax, and furnishing specifications for the office's appearance. However, Remax may suspend assistance if the franchisee fails to make required payments. Franchisees are required to operate the office according to the mandatory elements of the Remax System, as outlined in the RE/MAX Brand Identity: Trademark and Graphic Standards manual, which regulates the use of Remax Marks and specific computer hardware and software.