What happens if a Remax Annual Payment is considered late?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
eived by REMAX Regional by the 10th day of the month after the Team Office opens and by the 10th day of each month throughout the remainder of the Term of the Agreement. We have the right to increase the amount of the Monthly Ongoing Team Office Fee once in any calendar year provided such increase will not exceed 20% of the Monthly Ongoing Team Office Fee amount in effect at the time of any such increase.
H. PAYMENT/LATE CHARGES/INTEREST.
(1) Failure to Timely Make Payment.
If you fail to make any payments to us or REMAX, LLC by their due date, you agree to pay us or REMAX, LLC as the case may be: (a) a late charge equal to 20% of the amount due in the case of delinquent Annual Dues and 10% of the amount due in the case of all other delinquent fees and charges, or if such rates exceed the highest rate permitted by applicable law, then at the highest rate permitted by applicable law; and (b) with the exception of Annual Dues, interest on all amounts owed but unpaid at the rate of 1% per month compounded, or if such rate exceeds the highest rate permitted under applicable law, then at the highest rate legally permitted. If we or REMAX, LLC are ever deemed to have contracted for, charged or received interest on any overdue sums in an amount that exceeds the amount permitted under applicable law, then such excess amount shall be deemed intended for, and will be applied as, payment of outstanding fees or other amounts due under this Agreement and, if no such amounts remain outstanding, such excess shall be returned to you.
(2) Failure to Timely Submit Reports.
If you fail to submit any reports by their due date, you agree to pay us a late charge of $100 per day until the reports are submitted in compensation for the additional administrative costs and expenses we incur as a result of the late submission (see also Section 10).
(3) Submission of Payments.
You agree to pay all fees, dues, and charges in accordance with such procedures that REMAX Regional or REMAX, LLC may specify. REMAX Regional accepts payments via electronic funds transfer ("EFT") or automated clearinghouse transfer ("ACH"). REMAX Regional reserves the right to specify alternative methods of payment or to require payment other than by EFT or ACH and you agree to comply with our payment instructions and procedures.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee fails to make payments to Remax or REMAX, LLC by the due date, they will incur specific late charges and interest. For delinquent Annual Dues, a late charge equal to 20% of the amount due will be applied. For all other delinquent fees and charges, the late charge is 10% of the amount due. However, these rates will not exceed the highest rate permitted by applicable law.
In addition to late charges, interest is applied to all unpaid amounts, excluding Annual Dues, at a rate of 1% per month compounded. This interest rate is also capped at the highest rate legally permitted. If the interest charged exceeds the legal limit, the excess amount will be applied to any outstanding fees or other amounts due. If no such amounts are outstanding, the excess will be returned to the franchisee.
Furthermore, failure to pay Annual Dues in a timely manner may result in the suspension of some or all benefits and services provided by REMAX, LLC. These benefits and services include access to MAX/Center, participation in the RE/MAX referral network, access to RE/MAX University, eligibility for performance awards, eligibility to receive referrals from REMAX, LLC's electronic lead referral system, a customer relationship management software system, access to BoldTrail Back Office Software, integrated office and agent websites, and maintenance and protection of the valuable RE/MAX Marks. Remax also has the right to terminate the agreement if monies owed to them are not paid when due.