Under what condition will Remax waive the installment fee for the initial franchise fee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
isees for the initial franchise fee and, for renewing franchisees in good standing, the renewal franchise fee. In the past, we have offered—and we may continue to offer—financing as a financial incentive to facilitate mergers or conversions. In select cases in the future, we may also offer financing for acquisitions or other growth-related expenses.
If you wish to finance the initial franchise fee for a residential real estate office, the initial franchise fee will be $37,500 if your franchise is in a high-density area (as opposed to $35,000 if you pay it in one lump sum) or $19,000 if your franchise is in a low-density area (as opposed to $17,500 if you pay it in one lump sum). If you wish to finance the initial franchise fee for a commercial real estate office, the initial franchise fee will be $27,000 (as opposed to $25,000 if you pay it in one lump sum). A copy of the current form of Promissory Note for the initial franchise fee ("Promissory Note 1") is attached to this disclosure document as Exhibit B-1. Those who wish to finance this fee must pay at least 50% in cash as a down payment when the Franchise Agreement is signed. The balance of the initial franchise fee will be due in 12 equal monthly installments (however, if in the same calendar month that you sign the Franch
Source: Item 10 — FINANCING (FDD pages 56–59)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee finances the initial franchise fee and pays the remaining promissory note balance in full within the same calendar month that they sign the Franchise Agreement and pay the 50% down payment, Remax, LLC will waive the installment fee.
For a prospective Remax franchisee, this means that while Remax Regional offers financing for the initial franchise fee, there is an added cost to doing so in the form of an installment fee. The initial franchise fee for a residential real estate office is $37,500 in a high-density area (compared to $35,000 if paid in one lump sum) or $19,000 in a low-density area (compared to $17,500 if paid in one lump sum) when financed. For a commercial real estate office, the financed initial franchise fee is $27,000 (compared to $25,000 if paid in one lump sum).
To avoid this fee, the franchisee must pay at least 50% in cash as a down payment when signing the Franchise Agreement and then pay the remaining balance in the same calendar month. This could be a significant benefit for franchisees who have access to the capital shortly after signing but need a short-term financing solution. It's important to note that the monthly installments will be automatically charged to a bank account provided to RE/MAX Regional, and if payment by credit card is allowed, a processing fee or surcharge may apply.