Is the initial franchise fee for a Remax franchise refundable?
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. Payments you make to parties other than us or our affiliates may be refundable and/or financed at the option of the other party.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 43–47)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the initial franchise fee, which ranges from $17,500 to $37,500, is non-refundable. This fee is paid upon signing the Franchise Agreement and can be paid in a lump sum or financed.
For a prospective Remax franchisee, this means that once the franchise agreement is signed and the initial fee is paid, the franchisee cannot get this money back. This is a standard practice in franchising, as the initial fee covers Remax's initial costs in setting up the franchise, including training, market analysis, and administrative work.
While the initial franchise fee is non-refundable, the FDD notes that payments made to parties other than Remax or its affiliates may be refundable or financed, depending on the other party's policies. Therefore, it is important for a prospective franchisee to carefully review the terms and conditions of all agreements with third-party vendors to understand their refund policies.