What is the interest rate range for financing acquisition or other growth-related expenses with Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
In our discretion, we may also provide you with financing to assist you with acquisition or other growth-related expenses. While the amount of financing we offer will depend on the scope of your anticipated acquisition or growth-related expenses, we anticipate that up to 100% of the associated costs
may be covered by such financing. A copy of the current form of promissory note for acquisition or other growth-related expenses ("Promissory Note 4") is attached as Exhibit B-4.
If you wish to finance acquisition or other growth-related expenses, payments will be due in equal installments for a specific term, typically 36 to 60 months, at an interest rate between 5 and 10%. In some instances, interest may be waived provided you meet all growth goals that may be targeted through the end of the repayment period and you comply with all other terms and conditions of the promissory note and your franchise agreement.
If a payment due under Promissory Notes 1, 2 or 3 is late, RE/MAX Regional may accept the late payment with a 10% late charge or, upon 10 days' written notice, accelerate payment of the outstanding principal and interest. All payments will be applied first to outstanding late charges and then to principal. (Promissory Notes 1, 2 and 3 – Sections 3, 4 and 5.) If a payment due under Promissory Note 4 is late, RE/MAX Regional may accelerate payment and refer it for collection, as described below.
If RE/MAX Regional accelerates payment and subsequently refers any of the promissory notes to an attorney for collection, all outstanding amounts will bear interest at the default rate of 20% per year (or if this rate exceeds the highest rate permitted under applicable law, then at the highest rate legally permitted) and you will have to pay RE/MAX Regional's reasonable attorneys' fees and costs it incurs as a result of the default. As an additional remedy if you default, RE/MAX Regional may terminate your Franchise Agreement (although this will not release you from having to pay all unpaid amounts). (Promissory Notes 1 and 2 - Sections 5 and 6; Promissory Note 3 - Sections 4 and 6.)
Source: Item 10 — FINANCING (FDD pages 56–59)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax may provide financing for franchisees to assist with acquisition or other growth-related expenses. The amount of financing offered is dependent on the scope of the anticipated acquisition or growth-related expenses, but Remax anticipates that up to 100% of the associated costs may be covered.
If a franchisee wishes to finance acquisition or other growth-related expenses, payments will be due in equal installments for a term of typically 36 to 60 months. The interest rate for this financing will be between 5 and 10%. In some instances, the interest may be waived if the franchisee meets all growth goals targeted through the end of the repayment period and complies with all other terms and conditions of the promissory note and the franchise agreement.
If a payment is late under Promissory Note 4 (the promissory note for acquisition or other growth-related expenses), Remax Regional may accelerate payment and refer it for collection. If Remax Regional accelerates payment and refers the promissory note to an attorney for collection, all outstanding amounts will bear interest at a default rate of 20% per year (or the highest rate permitted under applicable law). The franchisee will also have to pay Remax Regional's reasonable attorneys' fees and costs incurred as a result of the default. As an additional remedy, Remax Regional may terminate the Franchise Agreement, although this will not release the franchisee from having to pay all unpaid amounts.