What was the total loss on termination recognized by Remax, including the lease termination payment, related to the office lease termination in the second quarter of 2022?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
ation*
During the second quarter of 2022, the Company terminated an office lease, which was owned by an entity controlled by former employees of the Company. As a result, the Company wrote off an ROU asset of $2.7 million and derecognized $1.5 million of lease liability associated with the terminated lease. The Company also recognized a loss on termination of $2.5 million, which included a lease termination payment of $1.3 mi
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, during the second quarter of 2022, Remax terminated an office lease. This lease was owned by an entity controlled by former employees of Remax. As a result, Remax wrote off a right-of-use (ROU) asset of $2.7 million and derecognized $1.5 million of lease liability connected to the terminated lease.
In addition to these accounting adjustments, Remax recognized a loss on termination of $2.5 million. This loss included a lease termination payment of $1.3 million.
For a prospective franchisee, this indicates that Remax, like any corporation, may undergo restructuring or changes in its real estate portfolio that can result in financial impacts. While this specific event does not directly affect franchisees, it provides insight into how Remax manages its financial obligations and real estate assets. Franchisees may want to inquire about Remax's current real estate strategy and any potential future impacts on the franchise system.