How are the monthly installments for the renewal fee financed through Remax charged?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
se Agreement and pay the 50% down payment you pay the remaining promissory note balance in full, REMAX, LLC will waive the installment fee). The monthly installments will be automatically charged to a bank account that you provide to RE/MAX Regional. If we allow you to pay by credit card, you may be charged a credit card processing fee or surcharge.
If you wish to finance the renewal fee for a residential real estate office, your renewal fee will be $14,000 if your franchise is in a high-density area (as opposed to $12,500 if you pay it in one lump sum) or $7,000 if your franchise is in a low-density area (as opposed to $6,000 if you pay it in one lump sum). If you wish to finance the renewal fee for a commercial real estate office, the renewal fee will be $10,250 (as opposed to $9,000 if you pay it in one lump sum). You will be required to make these payments in 12 equal payments with the first installment due immediately upon signing the renewal addendum, and the remaining installments due monthly thereafter. A copy of the current form of promissory note for the renewal franchise fee ("Promissory Note 2") is attached to this disclosure document as Exhibit B-2. The monthly installments will be automatically charged to a bank account that you provide to RE/MAX Regional. If we allow you to pay by credit card, you may be charged a credit card processing fee or surcharge.
If you are acquiring RE/MAX franchise rights as part of a large conversion or merger, RE/MAX Regional may provide you with financing to offset opening costs and transitional expenses such as office signage, yard signs, promotional materials and office supplies. While the amount of the financing offered will depend on the scope of the conversion or merger, RE/MAX Regional anticipates that up to 100% of the associated conversion costs will be covered by such financing. A copy of the current form of promissory note for large mergers and conversions ("Promissory Note 3") is attached as Exhibit B-3.
Source: Item 10 — FINANCING (FDD pages 56–59)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee chooses to finance the renewal fee, the monthly installments are automatically charged to a bank account provided to RE/MAX Regional. The franchisee will make 12 equal payments, with the first installment due immediately upon signing the renewal addendum and the remaining installments due monthly thereafter. This applies to both residential and commercial real estate offices.
For residential real estate offices, the renewal fee is $14,000 in high-density areas (compared to $12,500 if paid in one lump sum) or $7,000 in low-density areas (compared to $6,000 if paid in one lump sum) when financed. For commercial real estate offices, the renewal fee is $10,250 when financed, versus $9,000 if paid in a single payment. A copy of the current form of promissory note for the renewal franchise fee, "Promissory Note 2," is attached to the FDD as Exhibit B-2.
Remax also states that if they allow you to pay by credit card, you may be charged a credit card processing fee or surcharge. If a payment due under Promissory Notes 1, 2 or 3 is late, RE/MAX Regional may accept the late payment with a 10% late charge or, upon 10 days' written notice, accelerate payment of the outstanding principal and interest. All payments will be applied first to outstanding late charges and then to principal. If RE/MAX Regional accelerates payment and subsequently refers any of the promissory notes to an attorney for collection, all outstanding amounts will bear interest at the default rate of 20% per year (or if this rate exceeds the highest rate permitted under applicable law, then at the highest rate legally permitted) and you will have to pay RE/MAX Regional's reasonable attorneys' fees and costs it incurs as a result of the default. As an additional remedy if you default, RE/MAX Regional may terminate your Franchise Agreement (although this will not release you from having to pay all unpaid amounts).