What is the minimum performance standard during education for a Remax franchisee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no minimum performance standards, other than attending Initial Education, that must be satisfied during education.
You, or if you are a corporation, partnership, limited liability company or other business entity, each of your owners, will not only be required to personally guarantee your obligations under the Franchise Agreement but must also agree to be personally bound by, and personally liable for the breach of, every provision of the Franchise Agreement, including monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities. If you are a corporation, partnership, limited liability company or other business entity, and you, in turn, are owned by another business entity or entities, each owner of that business entity or those business entities must also agree to be personally bound by, and personally liable for the breach of, every provision of the Franchise Agreement, including monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities. This "Guaranty and Assumption of Obligations" is attached to the Franchise Agreement, which is Exhibit A to this disclosure document.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 80–81)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, there are no minimum performance standards that a franchisee must meet during the initial education, other than attending it. However, if the franchisee is a business entity, such as a corporation, partnership, or LLC, each owner must agree to be personally bound by and liable for any breach of the Franchise Agreement. This includes monetary obligations and specific actions or activities outlined in the agreement. This "Guaranty and Assumption of Obligations" is attached to the Franchise Agreement as Exhibit A.
Remax requires the franchisee or a principal owner to attend Initial Education and Recruiting 101 in their entirety. However, if a broker-manager is running the office, they are not required to attend or successfully complete either program. The franchisee must operate the office according to the Franchise Agreement and continuously work to improve the office's business.
This means that while Remax does not impose specific performance metrics during training, attendance is mandatory for franchisees or their principal owners. The personal guarantee requirement also underscores the importance of understanding and adhering to all terms of the Franchise Agreement, as breaches can result in personal liability for the franchisee and their owners.