What late fee is charged to Remax franchisees for failing to submit reports on time?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Audit | Cost of inspection or audit. | As incurred. | Payable if you fail to furnish reports, supporting records or other required information or you understate the amounts owed to RE/MAX Regional for any 3-month period by more than 5%, or if an inspection reveals other conduct that is unlawful or a breach of the Franchise Agreement. |
| Interest and Late Charges | As liquidated damages and not as a penalty: 20% of amount owed for the late payment of Annual Dues; 10% of amount owed for all other fees (or maximum amount allowed by law); $100 per day for the failure to timely submit reports; plus interest of 1% per month compounded (or highest rate allowed by law) of amount owed for all fees except Annual Dues. | Due with payment of outstanding amounts or submission of reports. | Payable on all overdue amounts or for the failure to timely submit reports. |
Source: Item 5 — INITIAL FEES (FDD pages 29–43)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees face specific financial penalties for failing to submit required reports on time. The late fee for failing to submit reports is $100 per day. This daily charge continues to accrue for each day the report is overdue.
In addition to the daily late fee, Remax also charges interest on overdue amounts. The interest rate is 1% per month, compounded, or the highest rate allowed by law, whichever is less. This interest applies to all fees owed to Remax, except for Annual Dues, which have a separate late payment penalty.
Furthermore, if a Remax franchisee understates the amounts owed to Remax Regional for any 3-month period by more than 5% or fails to furnish reports, supporting records or other required information, Remax may conduct an audit at the franchisee's expense. These financial repercussions highlight the importance of accurate and timely reporting to maintain compliance with the franchise agreement and avoid incurring additional costs.