What initial franchise fee financing does Remax offer to prospective franchisees?
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., 9.F., and 13.B.(3) of Franchise Agreement | Items 1, 6 and 11 |
| e. Opening | Section 3 and Subsection 13.B.(2) of Franchise Agreement | Items 1 and 11 |
| f. Fees | Subsection 2.E.(9), Section 6, Subsection 9.F., Subsection 12.D.(8), Subsection 13.C., and Subsection 15.H. of Franchise Agreement; and Sections 2 and 3 of Team Office Amendment. | Items 5, 6, 7 and 11 |
| g. Compliance with standards and policies/operating manual | Section 4 and Subsections 8.A., 8.B., 8.C., 8.J., 8.K., and 8.L. of Franchise Agreement; and Section 7 of Team Office Amendment. | Items 8 and 11 |
| h. Trademarks and proprietary information | Section 4, Subsections 5.C., 5.E., 8.K., 9.G., and Subsections 14.B. and C. of Franchise Agreement | Items 1, 11, 13 and 14 |
| Obligation | Section | Disclosure |
| in agreement | document item | |
| i. Restrictions on products/services offered | Subsections 2.A., 2.C., 2.D., 3.C., 4.B., 8.B., 8.C., 8.F., and 9.E. of Franchise Agreement | Items 8, 11 and 16 |
| j. Warranty and customer service requirements | Subsections 5.B., 5.C., 8.B., 8.F., and 8.I. of Franchise Agreement; Section 7 BoldTrail Back Office License Agreement and BoldTrail Platform Agreement | Items 8, 11 and 16 |
| k. Territorial development and sales quotas | Subsection 2.C., Section 7 and Subsections 13.C. and 13.D. of Franchise Agreement | Item 12 |
| l. On-going product/service purchases | Section 3, Subsections 8.A., 8.B., 8.D., 8.H., 8.I., 8.J., and 8.K. of Franchise Agreement | Item 8 |
| m. Maintenance, appearance and remodeling requirements | Section 3 and Subsections 8.A. and 8.B. of Franchise Agreement | Items 7 and 11 |
| n. Insurance | Subsection 8.D. and 14.K. of Franchise Agreement | Items 7 and 8 |
| o. Advertising | Subsections 4.B., 6.D., 8.C., 8.J. and 9.C. of Franchise Agreement; and Section 7 of Team Office Amendment | Items 6 and 11 |
| p. Indemnification | Subsection 5.D. of Franchise Agreement; Section 8 of BoldTrail Back Office License Agreement and BoldTrail Platform Agreement | Item 6 |
| q. Owner’s participation/ | Section 1 and Subsections 2.B., 5.B., 8.E. | Items 1, 11 and 15 |
| management/staffing | and 8.F. of Franchise Agreement | |
| Obligation | Section | Disclosure |
| in agreement | document item | |
| r. Records and reports | Subsection 6.F. (2), Section 10 and Subsection 13.C.(3) of Franchise Agreement; and Section 9 of Team Office Amendment | Items 11 and 17 |
| s. Inspections and audits | Section 11 of Franchise Agreement | Item 6 |
| t. Transfer | Section 12 and Subsection 13.B. of Franchise Agreement | Item 17 |
| u. Renewal | Subsection 2.E. of Franchise Agreement; and Section 11 of Team Office Amendment | Item 17 |
| v. Post-termination obligations | Section 14 of Franchise Agreement | Item 17 |
| w. Non-competition covenants | Subsections 5.F. and 14.J. of Franchise Agreement | Item 17 |
| x. Dispute resolution | Not Applicable | Not Applicable |
| y. Owners/shareholders guarantee | Subsection 12.F. of Franchise Agreement and Guaranty and Assumption of Obligations attached to Franchise Agreement | Item 15 |
FINANCING
RE/MAX Regional offers financing to prospective franchisees for the initial franchise fee and, for renewing franchisees in good standing, the renewal franchise fee. In the past, we have offered—and we may continue to offer—financing as a financial incentive to facilitate mergers or conversions. In select cases in the future, we may also offer financing for acquisitions or other growth-related expenses.
If you wish to finance the initial franchise fee for a residential real estate office, the initial franchise fee will be $37,500 if your franchise is in a high-density area (as opposed to $35,000 if you pay it in one lump sum) or $19,000 if your franchise is in a low-density area (as opposed to $17,500 if you pay it in one lump sum). If you wish to finance the initial franchise fee for a commercial real estate office, the initial franchise fee will be $27,000 (as opposed to $25,000 if you pay it in one lump sum). A copy of the current form of Promissory Note for the initial franchise fee ("Promissory Note 1") is attached to this disclosure document as Exhibit B-1. Those who wish to finance this fee must pay at least 50% in cash as a down payment when the Franchise Agreement is signed. The balance of the initial franchise fee will be due in 12 equal monthly installments (however, if in the same calendar month that you sign the Franchise Agreement and pay the 50% down payment you pay the remaining promissory note balance in full, REMAX, LLC will waive the installment fee). The monthly installments will be automatically charged to a bank account that you provide to RE/MAX Regional. If we allow you to pay by credit card, you may be charged a credit card processing fee or surcharge.
Source: Item 10 — FINANCING (FDD pages 56–59)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional offers financing to prospective franchisees for the initial franchise fee. For a residential real estate office in a high-density area, the initial franchise fee is $37,500 when financed, compared to $35,000 if paid in a lump sum. In a low-density area, the financed fee is $19,000 versus a $17,500 lump sum payment. For a commercial real estate office, financing results in a $27,000 fee, while a lump sum payment is $25,000.
To finance the initial franchise fee, Remax requires a minimum 50% cash down payment upon signing the Franchise Agreement. The remaining balance is then paid in 12 equal monthly installments, which are automatically charged to the franchisee's provided bank account. However, Remax will waive the installment fee if the franchisee pays the remaining balance in full during the same calendar month that they sign the Franchise Agreement and pay the 50% down payment. If Remax allows payment by credit card, a processing fee or surcharge may be applied.
The FDD also states that if a franchisee transfers any interest in the Franchise Agreement or if the Franchise Agreement is terminated, the unpaid principal and interest balance becomes immediately due and payable. Remax does not allow franchisees to assign any of the promissory notes without prior written consent. The promissory notes may or may not need to be secured by collateral other than the franchise itself, and whether a separate guaranty will be required depends on the franchisee's financial condition and available collateral.
Remax does not charge any additional finance fees to apply for or secure the financing, other than what is described in the FDD. Remax Regional does not guarantee any franchisee's note, lease, or obligation, nor does it receive direct or indirect payments for placing financing.