What happens if a Remax franchisee fails to pay Annual Dues in a timely manner?
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, failing to pay annual dues in a timely manner can lead to specific financial penalties and potential loss of benefits. The annual dues are set at $410 per Sales Associate, though Remax, LLC can increase this amount once per calendar year, but not by more than 20% of the existing dues amount. These dues compensate Remax, LLC for benefits and services provided to the franchisee and their Sales Associates. These benefits include access to MAX/Center, participation in the RE/MAX referral network, access to RE/MAX University, eligibility for performance awards and lead referrals, a customer relationship management software system, access to BoldTrail Back Office Software, integrated office and agent websites, and maintenance and protection of the RE/MAX Marks.
If a Remax franchisee fails to make timely payments, they will incur a late charge of 20% of the amount due specifically for delinquent Annual Dues. Additionally, Remax may suspend some or all of the benefits and services afforded to the franchisee and their Sales Associates.
Furthermore, Remax has the right to terminate the franchise agreement with only 10 days' written notice if any monies owed to Remax, LLC are not paid when due. This emphasizes the importance of adhering to the payment terms outlined in the franchise agreement. The agreement also stipulates that the franchisee cannot withhold payment of any fees or other amounts due to Remax, REMAX, LLC, or any of their related parties, even on alleged grounds of non-performance by Remax.