Must the proposed transferee or assignee meet Remax's current standards for new franchisees?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, we may require that any or all of the following conditions be met before or at the time of such assignment or transfer:
- (5) the transferee(s) or assignee(s) must meet our then current subjective and objective standards for new franchisees, including, if then applicable, those relating to relevant experience, education and licensing, background and past record of compliance with laws, financial capacity, skills, integrity and other qualities of character.
The transferee(s) or assignee(s) must also execute a form authorizing REMAX Regional or REMAX, LLC to obtain a consumer report and to conduct a credit and background check;
- (6) the transferee(s) or assignee(s), if appropriate as determined by us, must agree to attend and complete to our satisfaction the RE/MAX Initial Education Program then being offered by us;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a proposed transferee or assignee must meet Remax's then-current standards for new franchisees. These standards encompass both subjective and objective criteria. This includes factors such as relevant experience, education, licensing, background, past record of compliance with laws, financial capacity, skills, and integrity.
In practical terms, this means that if a franchisee wants to sell their Remax franchise, the person or entity they sell it to must essentially qualify as if they were applying for a new franchise. Remax retains the right to evaluate the proposed transferee's character, creditworthiness, business experience, professional credentials, and ethical background. To facilitate this evaluation, the transferee or assignee must authorize Remax Regional or Remax, LLC to obtain a consumer report and conduct credit and background checks.
This requirement protects the Remax brand by ensuring that all franchisees meet a certain standard of competence and integrity. It also means that a franchisee cannot simply sell their franchise to anyone; they must find a buyer who is acceptable to Remax. Additionally, the transferee or assignee, if deemed appropriate by Remax, must agree to attend and complete the RE/MAX Initial Education Program to Remax's satisfaction.