Are Remax's matching contributions to the 401(k) plan mandatory or discretionary?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
ontribution Savings Plan**
The Company sponsors an employee retirement plan (the "401(k) Plan") that provides certain eligible employees of the Company an opportunity to accumulate funds for retirement. The Company provides matching contributions on a discretionary basis. During the years ended December 31, 2024, 2023 and 2022, the Company recognized expense of $2.6 million, $2.6 million and $3.2 million, respectively, for matching contrib
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the company sponsors a 401(k) plan that allows eligible employees to save for retirement. Remax provides matching contributions to this plan. However, these matching contributions are made on a discretionary basis, meaning Remax is not obligated to provide them every year.
For the years 2022, 2023, and 2024, Remax did make matching contributions. The expense recognized by Remax for these contributions was $3.2 million in 2022, $2.6 million in both 2023 and 2024.
As a prospective franchisee, it's important to understand that while Remax has historically contributed to the 401(k) plan, they are not legally bound to do so. This means the availability and amount of matching contributions can change from year to year, depending on Remax's financial performance and other factors. Franchisees should factor this uncertainty into their long-term financial planning and retirement savings strategy.