Can Remax Regional stop charging and collecting the Hot Air Balloon Fund fee?
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 Agreem
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional has the right to stop charging and collecting the Hot Air Balloon Fund fee at any time, using its sole discretion. This fee applies to offices located in Minnesota or Wisconsin, where franchisees pay $100 per month. For offices in Indiana, the fee is $175 per month in high-density areas (over 30,000 population) and $125 per month in low-density areas.
The Hot Air Balloon Fund is used to promote the Remax system, and Remax has the right to determine how the funds are used. Remax can increase the fee once per calendar year, but not by more than 20%. Any unspent funds at the end of the fiscal year are carried over to the next year for advertising and promotional purposes. These funds become the non-refundable property of the Marketing Fund.
This clause gives Remax significant flexibility in managing the Hot Air Balloon Fund. While franchisees must pay the fee if they are located in the specified states, Remax can choose to discontinue it. This could be beneficial if Remax decides the fund is no longer necessary or effective. However, franchisees should be aware that they have no control over this decision, and the fees are non-refundable once paid into the fund. Prospective franchisees should inquire about the circumstances under which Remax might discontinue the fee and how this decision would be communicated.