When must RE/MAX Integrated Regions, LLC provide the disclosure document to a prospective franchisee before signing a binding agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
IF RE/MAX INTEGRATED REGIONS, LLC ("WE" OR "US") OFFERS YOU A FRANCHISE, WE MUST PROVIDE THIS DISCLOSURE DOCUMENT TO YOU BY THE EARLIER OF:
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- 14 CALENDAR DAYS BEFORE YOU SIGN A BINDING AGREEMENT WITH US OR OUR AFFILIATE(S) IN CONNECTION WITH THE PROPOSED FRANCHISE SALE, OR
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- 14 CALENDAR DAYS BEFORE ANY PAYMENT TO US OR OUR AFFILIATE(S).
IF WE DO NOT DELIVER THIS DISCLOSURE DOCUMENT ON TIME OR IF IT CONTAINS A FALSE OR MISLEADING STATEMENT, OR A MATERIAL OMISSION, A VIOLATION OF FEDERAL LAW AND STATE LAW MAY HAVE OCCURRED AND SHOULD BE REPORTED TO THE FEDERAL TRADE
COMMISSION, WASHINGTON, DC 20580 AND THE STATE AGENCIES LISTED IN EXHIBIT H.
The issuance date for this disclosure document is April 2, 2025.
Source: Item 23 — RECEIPTS (FDD pages 473–476)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, RE/MAX Integrated Regions, LLC must provide the disclosure document to a prospective franchisee at least 14 calendar days before the earlier of two events. These events are signing a binding agreement with Remax or its affiliates concerning the franchise sale, or making any payment to Remax or its affiliates. This regulation ensures that potential franchisees have adequate time to review the FDD and make informed decisions.
This 14-day review period is a standard requirement under the Franchise Rule, a federal regulation designed to protect prospective franchisees. It gives individuals the opportunity to carefully consider the terms of the franchise agreement, assess the risks and benefits, and seek professional advice from attorneys or financial advisors. The FDD contains crucial information about the franchise system, including fees, obligations, and financial performance representations.
If Remax fails to deliver the disclosure document on time, or if the document contains false or misleading statements, or omits material information, it may constitute a violation of federal and state law. In such cases, the FDD advises that the violation should be reported to the Federal Trade Commission (FTC) in Washington, DC, and to the relevant state agencies listed in Exhibit H of the FDD. This provision underscores the importance of accurate and timely disclosure in the franchise sales process.
Prospective Remax franchisees should carefully note the issuance date of the disclosure document, which is April 2, 2025, and ensure they receive the document well in advance of any binding agreements or payments. They should also verify that the disclosure document includes all the exhibits listed, such as the Franchise Agreement, Renewal Addendum, and various other agreements and terms of use. Thoroughly reviewing the FDD and seeking professional guidance can help franchisees make well-informed decisions and protect their investment.