When is the monthly Remax Hot Air Balloon Fund fee considered late?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
AND WISCONSIN ONLY)**
To cover the costs of the Hot Air Balloon Fund, if your Office is located in Indiana, you agree to pay REMAX Regional or its designee a monthly Hot Air Balloon Fund fee of $175 per month if your office is in a high-density area (an area with a general population of more than 30,00 people) or $125 per month if your Office is a low-density area
(an area with a general population of less than 30,000 people, that is substantially distant from a major urban area). If your Office is located in Minnesota or Wisconsin, you agree to pay REMAX Regional or its designee a monthly Hot Air Balloon Fund fee of $100 per month. The Hot Air Balloon Fund fee is due and will be considered late if not received by us on the 10th day of each month throughout the Term of this Agreement commencing on the 10th day of the month after the month the Office opens. The Hot Air Balloon Fund fee is used to promote the System in such manner as we have the right to determine from time to time. We may increase the Hot Air Balloon Fund once in any calendar year, but not by more than 20% of the amount of the Hot Air Balloon Fund fee as of the date of any such increase. You agree that REMAX Regional has the right to stop charging and collecting this fee at any time in its sole and absolute discretion. It is possible that not all of the funds that are contributed to the Hot Air Balloon Fund will be spent that year. Excess funds that have not been spent by the end of any given fiscal year will be carried over to the next year until these excess funds are spent for the advertising and promotional purposes (but excluding administrative costs) described above. All Hot Air Balloon Fund fees and contributions become the non-refundable property of the Marketing Fund. All monies collected and disbursed by the Marketing Fund, including any interest, dividends, capital gains or other income earned on these monies, will be accounted for separately from our and REMAX, LLC's other funds. A portion of your annual contributions to the Hot Air Balloon Fund will be used to pay administrative expenses reasonably related to the direction and implementation of the Hot Air Balloon Fund's purposes described above.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Hot Air Balloon Fund fee is considered late if it is not received by Remax by the 10th day of each month. This applies throughout the term of the agreement, starting on the 10th day of the month after the Remax office opens. This fee applies only to offices located in Indiana, Minnesota, or Wisconsin.
For franchisees in Indiana, the monthly Hot Air Balloon Fund fee is $175 for offices in high-density areas (population over 30,000) and $125 for offices in low-density areas. For franchisees in Minnesota or Wisconsin, the fee is $100 per month. Remax has the right to stop charging and collecting this fee at any time.
Remax also requires franchisees to authorize them to debit their business checking account for various fees, including the Hot Air Balloon Fund fee. Failure to complete the necessary documents for auto-debiting may result in a $100 per month processing fee. Additionally, if there are insufficient funds in the franchisee's account to cover the fees, Remax may charge a $100 processing fee and require future payments to be made by certified check or another designated payment method.