What minimum down payment is required to finance the initial franchise fee with Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
isees for the initial franchise fee and, for renewing franchisees in good standing, the renewal franchise fee. In the past, we have offered—and we may continue to offer—financing as a financial incentive to facilitate mergers or conversions. In select cases in the future, we may also offer financing for acquisitions or other growth-related expenses.
If you wish to finance the initial franchise fee for a residential real estate office, the initial franchise fee will be $37,500 if your franchise is in a high-density area (as opposed to $35,000 if you pay it in one lump sum) or $19,000 if your franchise is in a low-density area (as opposed to $17,500 if you pay it in one lump sum). If you wish to finance the initial franchise fee for a commercial real estate office, the initial franchise fee will be $27,000 (as opposed to $25,000 if you pay it in one lump sum). A copy of the current form of Promissory Note for the initial franchise fee ("Promissory Note 1") is attached to this disclosure document as Exhibit B-1. Those who wish to finance this fee must pay at least 50% in cash as a down payment when the Franchise Agreement is signed. The balance of the initial franchise fee will be due in 12 equal monthly installments (however, if in the same calendar month that you sign the Franch
Source: Item 10 — FINANCING (FDD pages 56–59)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a prospective franchisee wishes to finance the initial franchise fee, they must pay at least 50% in cash as a down payment when signing the Franchise Agreement. The remaining balance of the initial franchise fee will be paid in 12 equal monthly installments.
For a residential real estate office in a high-density area, the initial franchise fee is $37,500 when financed (compared to $35,000 if paid in one lump sum). In a low-density area, the financed initial franchise fee is $19,000 (compared to $17,500 if paid in one lump sum). For a commercial real estate office, the financed initial franchise fee is $27,000 (compared to $25,000 if paid in one lump sum). Therefore, the minimum down payment would be 50% of these financed amounts, depending on the type and location of the franchise.
Remax also specifies that the monthly installments will be automatically charged to a bank account provided by the franchisee. While Remax may allow payments via credit card, a processing fee or surcharge could be applied. A copy of the current Promissory Note for the initial franchise fee is included as Exhibit B-1 in the FDD.