Under what circumstances is the Remax Lost Future Revenue fee payable?

According to Remax's 2025 Franchise Disclosure Document, the Lost Future Revenue fee becomes payable if the Franchise Agreement or Team Office Amendment is terminated early for reasons other than mutual consent, or if the office is abandoned. This fee is designed to compensate Remax for the revenue it would have received had the franchise agreement remained in effect for its full term.

The Lost Future Revenue is calculated by combining the Monthly Ongoing Fees, Annual Dues, and Marketing Fund fees that would have been payable from the date of early termination or abandonment through the remaining months of the franchise agreement. This total is then multiplied by the greater of either the highest number of Sales Associates affiliated with the office in any month prior to termination, or the number of Sales Associates required under Section 7 of the Franchise Agreement during the remaining term. The calculation also includes all incentives granted to the franchisee during the term of the Franchise Agreement.

In addition to the Lost Future Revenue, Remax retains the right to pursue intangible damages and any other legal or equitable remedies available to them. This means that the franchisee could potentially face additional financial liabilities beyond the calculated Lost Future Revenue, depending on the specific circumstances of the termination or abandonment. Prospective franchisees should carefully consider these potential costs and seek legal counsel to fully understand the implications of early termination or abandonment of the franchise agreement.