Under what condition will Remax not unreasonably withhold approval of a proposed assignment or transfer of the Franchise Agreement to a Business Entity?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or your Owners propose to transfer or assign this Agreement, the Franchise, the assets of the Franchise or Office or a controlling interest (as defined above), we will not unreasonably withhold our consent provided you or your Owners, as appropriate, submit to us in connection with the request for our consent such financial and other information we prescribe demonstrating that the transferee(s) or assignee(s) have sufficient business experience, aptitude, qualifications and financial resources in our judgment to operate the Office and that they otherwise meet our criteria for ownership of a RE/MAX franchise. Because we have historically placed great value on developing business relationships with, and have relied on the personal skills of, individual franchise owners, we have generally permitted transfers or assignments only to individuals or entities closely owned or held by such individuals. In addition, our franchise agreements prohibit, and we have traditionally refused to permit, franchisees from engaging in competitive businesses. Moreover, we have historically declined transfers or assignments to competitors or entities controlled by or directly or indirectly affiliated with competitors or organizations in which conflicts of interest may arise, or for which their RE/MAX real estate office will not be their principal focus. Accordingly, it shall not be deemed unreasonable for us, and we expressly reserve the right; (i) to withhold our consent to proposed transfers or assignments to institutions (whether held publicly or privately) including, by way of example only, banking or other financial institutions, mutual fund companies and insurance companies, mortgage companies and title companies; and (ii) to withhold our consent to transfers or assignments to individuals or entities offering products or services that directly or indirectly compete with the products or services offered by RE/MAX offices, REMAX Regional, or REMAX, LLC, or that are designed to bolster other business activities as opposed to focusing primarily on the RE/MAX real estate brokerage business, including without limitation, real estate, mortgage, title, insurance, relocation or franchising services.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax will not unreasonably withhold consent to a transfer or assignment of the Franchise Agreement if the franchisee or their owners submit financial and other information demonstrating that the proposed transferee or assignee has sufficient business experience, aptitude, qualifications, and financial resources to operate the office. The transferee or assignee must also meet Remax's criteria for ownership of a Remax franchise.
Remax has historically valued business relationships with individual franchise owners and has generally permitted transfers or assignments only to individuals or entities closely owned or held by such individuals. Remax franchise agreements prohibit franchisees from engaging in competitive businesses, and Remax has traditionally declined transfers or assignments to competitors or entities controlled by or affiliated with competitors, or organizations in which conflicts of interest may arise, or for which their Remax real estate office will not be their principal focus.
Remax expressly reserves the right to withhold consent to proposed transfers or assignments to institutions such as banking or financial institutions, mutual fund companies, insurance companies, mortgage companies, and title companies. Remax also reserves the right to withhold consent to transfers or assignments to individuals or entities offering products or services that directly or indirectly compete with the products or services offered by Remax offices, Remax Regional, or Remax, LLC, or that are designed to bolster other business activities as opposed to focusing primarily on the Remax real estate brokerage business, including real estate, mortgage, title, insurance, relocation, or franchising services.
In practical terms, this means that a Remax franchisee looking to sell their franchise to a business entity must ensure that the entity is financially sound, experienced in business, and not a competitor or affiliated with a competitor of Remax. The franchisee should also be prepared to provide Remax with all necessary financial and other information about the proposed transferee or assignee to allow Remax to make an informed decision.