How are payments credited to a Remax franchise account, specifically regarding late charges and outstanding balances?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
All payments, as of the date of receipt, shall first be credited to any late charges due; the balance, if any, shall next be credited to the outstanding balance due.
When we or REMAX, LLC receive a payment or a partial payment required under this Section 6, we or REMAX, LLC have the right to apply it as we see fit to any past due indebtedness of yours, including late charges or interest due, all without regard to how you designate or direct that a particular payment be applied. If we are ever deemed to have contracted for, charged or received late payments or interest on any overdue sums in an amount that exceeds the amount permitted under applicable law, then such excess amount shall be deemed intended for, and will be applied as, payment of outstanding fees or other amounts due under this Agreement and, if no such amounts remain outstanding, such excess shall be returned to you.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, any payments received are first applied to cover any outstanding late charges. After the late charges are settled, the remaining balance of the payment is then credited towards the outstanding balance due on the account.
This policy ensures that late fees are prioritized, which is a common practice in franchising to encourage timely payments. For a prospective Remax franchisee, this means that if you have any late charges on your account, any payment you make will first go towards covering those charges before reducing your overall balance. This could impact the timing of when the principal amount of your debt is reduced.
Remax also has the right to apply payments as it sees fit to any past due indebtedness, including late charges or interest due, regardless of how the franchisee designates the payment. If Remax is ever deemed to have charged excessive late payments or interest, the excess amount will be applied to outstanding fees or other amounts due, and any remaining excess will be returned to the franchisee.