What late charge does Remax impose for delinquent Annual Dues?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee fails to make timely payments, including Annual Dues, Remax imposes a late charge. For delinquent Annual Dues, the late charge is equal to 20% of the amount due.
This late charge applies if the franchisee does not remit payments to Remax or REMAX, LLC by the specified due date. However, the agreement also stipulates that if these rates exceed the highest rate permitted by applicable law, the late charge will be adjusted to the highest legally permissible rate.
In addition to late charges on other delinquent fees and charges, Remax also charges interest on all overdue amounts at a rate of 1% per month compounded, excluding Annual Dues. This interest rate is also subject to legal limitations, ensuring it does not exceed the maximum rate allowed by law. Remax retains the right to apply payments as it sees fit to any past due indebtedness, including late charges or interest, irrespective of any designation made by the franchisee.