What is the typical term length for financing acquisition or other growth-related expenses with Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
the amount of financing we offer will depend on the scope of your anticipated acquisition or growth-related expenses, we anticipate that up to 100% of the associated costs
may be covered by such financing. A copy of the current form of promissory note for acquisition or other growth-related expenses ("Promissory Note 4") is attached as Exhibit B-4.
If you wish to finance acquisition or other growth-related expenses, payments will be due in equal installments for a specific term, typically 36 to 60 months, at an interest rate between 5 and 10%. In some instances, interest may be waived provided you meet all growth goals that may be targeted through the end of the repayment period and you comply with all other terms and conditions of the promissory note and your franchise agreement.
If a payment due under Promissory Notes 1, 2 or 3 is late, RE/MAX Regional may accept the late payment with a 10% late charge or, upon 10 days' written notice, accelerate payment of the outstanding principal and interest. All payments will be applied first to outstanding late charges and then to principal. (Promissory Notes 1, 2 and 3 – Sections 3, 4 and 5.) If a payment due under Promissory Note 4 is late, RE/MAX Regional may accelerate payment and refer it for collection, as described below.
Source: Item 10 — FINANCING (FDD pages 56–59)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if Remax provides financing for acquisition or other growth-related expenses, the repayment term is typically between 36 to 60 months. These payments are structured as equal installments over the specified term. The interest rate for such financing ranges from 5% to 10%.
Remax may waive the interest under certain conditions. Specifically, if the franchisee meets all growth goals targeted through the end of the repayment period and complies with all other terms and conditions outlined in the promissory note and the franchise agreement, the interest may be waived. This incentive encourages franchisees to achieve specific growth targets, potentially benefiting both the franchisee and Remax.
It's important to note that late payments on the promissory note can trigger serious consequences. Remax Regional may accelerate the payment and refer it for collection. If this happens, all outstanding amounts will bear interest at a default rate of 20% per year (or the highest legally permitted rate), and the franchisee will be responsible for Remax Regional's reasonable attorneys' fees and costs incurred due to the default. Additionally, Remax Regional may terminate the Franchise Agreement, although this termination does not release the franchisee from the obligation to pay all unpaid amounts.