What are the franchisee's obligations regarding maintaining the standards of the Remax brand as outlined in Item 9, and how does Remax assist with this through the advertising and marketing support described in Item 11?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
All of your marketing and promotion, and the marketing and promotion of your Sales Associates, and any other marketing and promotion emanating from your Office, must be completely factual and conform to the highest standards of ethical advertising. In all of your dealings with clients, customers, suppliers, us, REMAX, LLC and the public, you must adhere to the highest standards of honesty, integrity, fair dealing and ethical conduct. You agree to promptly respond to all complaints received from your customers, clients or other individuals, in an attempt to resolve any disputes in a reasonable business manner. You agree to refrain, and to ensure that your Sales Associates and any other persons affiliated with your Office refrain, from any business or advertising practice which may be injurious to our or REMAX, LLC's business and the goodwill associated with the RE/MAX Marks and other RE/MAX offices.
Each RE/MAX office must make monthly contributions to the Marketing Fund on behalf of each person who is licensed with the RE/MAX office (see Item 6 above).
Not all franchisees contribute to the Marketing Fund on the same basis as other franchisees. Marketing Fund fees differ depending on the state—or area within the state—that a franchisee is located. Moreover, in some instances, and usually for a limited period of time, RE/MAX Regional may vary, waive, reduce or defer Marketing Fund fees. As a result, not all franchisees contribute to the Marketing Fund on the same basis as other franchisees.
Although the Marketing Fund and Hot Air Balloon Funds are intended to maximize general public recognition of the Marks, the RE/MAX System and services offered by RE/MAX offices, neither RE/MAX Regional nor REMAX, LLC is obligated to ensure that expenditures by the Marketing Fund are proportionate or equivalent to the contributions to it by RE/MAX offices or that any RE/MAX office will benefit directly or in proportion to its contribution to the Marketing Fund and Hot Air Balloon Fund from the development of advertising and marketing materials or the placement of advertising.
The Marketing Fund may furnish you with samples of advertising, marketing and promotional materials at no cost; you may also purchase additional copies of these materials from it. You are permitted to use your own advertising materials to specifically promote the Office if you follow the standards and policies issued by REMAX, LLC to protect the Marks. All of your advertising and promotion must be completely clear and factual and conform to the highest standards of fair and ethical marketing.
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees have specific obligations to maintain brand standards, particularly in advertising and ethical conduct. All marketing and promotion must be completely factual and adhere to the highest standards of ethical advertising. Franchisees must also maintain high standards of honesty, integrity, fair dealing, and ethical conduct in all interactions with clients, customers, suppliers, Remax, LLC, and the public. Franchisees are required to promptly address customer complaints and avoid any business or advertising practices that could harm Remax's business or goodwill. These stipulations ensure the consistent upholding of the Remax brand image across all franchise locations.
Remax provides support through a Marketing Fund, which franchisees contribute to monthly. However, the amount of contribution can vary depending on the franchisee's location, and Remax Regional may sometimes adjust these fees. The Marketing Fund aims to enhance public recognition of the Remax brand and the services offered by Remax offices. While Remax may provide advertising samples, franchisees can also create their own advertising materials, provided they adhere to Remax's standards and policies to protect the brand's trademarks.
It's important to note that Remax does not guarantee that the expenditures from the Marketing Fund will directly benefit each office in proportion to its contribution, nor does Remax have fiduciary obligations regarding the fund's administration. This means that while franchisees are required to contribute to the Marketing Fund, the benefits they receive may not directly correlate with their financial input. Franchisees are responsible for ensuring their operations and advertising meet Remax's standards, with the support of the marketing materials and brand guidelines provided by Remax.