If financing the initial franchise fee for a Remax franchise, what document must be signed?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
2 The Initial Franchise Fee is non-refundable. If you finance your Initial Franchise Fee, you will sign a promissory note as described in Item 10.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 43–47)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee chooses to finance the initial franchise fee, they will be required to sign a promissory note. The initial franchise fee ranges from $17,500 to $37,500 and is paid to RE/MAX, LLC upon signing the Franchise Agreement.
It is important to note that, per Item 7, the initial franchise fee is non-refundable. This means that even if the franchisee is unable to open their Remax office, the initial franchise fee will not be returned.
Remax does not offer direct or indirect financing for any part of the initial investment, except as discussed in Items 5 and 10. The availability and terms of financing will depend on factors such as the franchisee's creditworthiness, available collateral, and the lending policies of financial institutions.