Under what circumstances can Remax Regional require a Remax franchisee to repay Franchisee Incentives received prior to a default?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If you have received any Franchisee Incentives from REMAX Regional, and you default on any of your material obligations to REMAX Regional under this Agreement, REMAX Regional reserves the right to terminate your eligibility for any and all such Franchisee Incentives. If you fail to cure any such default within the cure period provided in this Agreement, or if such default cannot be cured, or in the event of an Early Termination of this Agreement for any reason other than pursuant to mutual consent, prior to the conclusion of the Term or any applicable renewal thereof, or upon Abandonment of the Office, REMAX Regional reserves the right to require you, on demand, to repay any and all Franchisee Incentives that you received from REMAX Regional prior to such default, Early Termination, or Abandonment.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional can demand repayment of Franchisee Incentives under specific circumstances related to defaults, early termination, or abandonment of the office. If a Remax franchisee receives Franchisee Incentives and subsequently defaults on any material obligations to Remax Regional, Remax Regional has the right to terminate the franchisee's eligibility for any further Franchisee Incentives.
If the franchisee fails to correct the default within the provided cure period, or if the default cannot be cured, Remax Regional reserves the right to demand repayment of all Franchisee Incentives received prior to the default. This repayment demand also applies in the event of an early termination of the franchise agreement for any reason other than mutual consent, before the conclusion of the term or any applicable renewal.
Additionally, if a Remax franchisee abandons the office, Remax Regional can require the franchisee to repay all Franchisee Incentives received before the abandonment. This policy ensures that Remax can recover financial incentives provided to franchisees who fail to meet their contractual obligations or prematurely end their franchise agreement, protecting Remax's investment in supporting its franchisees.