How long is the typical contractual term for a Remax franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise sales comprises revenue from the sale or renewal of franchises. A fee is charged upon a franchise sale or renewal. Those fees are deemed to be a part of the license of symbolic intellectual property and are recognized as revenue over the contractual term of the franchise agreement, which is typically 5 years for RE/MAX and 7 years for Motto franchise agreements.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the typical contractual term for a Remax franchise agreement is 5 years. This means that franchisees can expect their initial agreement to last for this duration, during which they operate their franchise under the terms and conditions outlined in the agreement.
At the end of the initial 5-year term, franchisees may have the option to renew their agreement, potentially for another term. The FDD mentions that franchise sales comprises revenue from the sale or renewal of franchises. Renewal fees are part of the license of symbolic intellectual property and are recognized as revenue over the contractual term of the franchise agreement.
It is important for prospective franchisees to understand the length of the franchise term, as it affects their long-term business planning and investment decisions. Franchisees should inquire about the conditions and costs associated with renewing their franchise agreement to fully understand their options at the end of the initial term.