Under what conditions can
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
terest*" shall mean shares of your stock or securities convertible into shares of your stock (if you are a corporation); proprietorship, partnership, membership or other interest (if you are a Business Entity); or any other equitable or legal right in or to any shares of such stock or in any such proprietorship, partnership, membership or other interest. Any unauthorized sale, lease, conveyance, gift, subfranchise, sublicense, pledge, mortgage, assignment, transfer or encumbrance by operation of law or otherwise, or any attempt to do so, shall be deemed void and grounds for us to terminate this Agreement.
C. CONDITIONS FOR TRANSFER OR ASSIGNMENT OF LESS THAN CONTROLLING INTEREST.
If you, or if you are a Business Entity, your Owners, propose to transfer or assign any interest or interests totaling, in the aggregate, less than a controlling interest, we will not unreasonably withhold our consent to such transfer or assignment to persons who meet our qualifications for owners of RE/MAX offices, although we reserve the right to impose reasonable conditions as a prerequisite for receiving our approval. Such conditions may include some or all of the conditions set forth in Subsection 12.D. below, as we deem appropriate under the circumstances. "Controlling interest" shall be defined to be any interest greater than 50% ownership interest in a proprietorship, partnership or limited liability company or other type of business entity or, if a corporation, any interest greater than 50% of the equity and voting power of all issued and outstanding capital stock.
D. CONDITIONS FOR TRANSFER OR ASSIGNMENT OF AGREEMENT OR CONTROLLING INTEREST IN FRANCHISE OWNER.
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.
In addition, we may require that any or all of the following conditions be met before or at the time of such assignment or transfer:
- (1) you and your Owners must be in compliance with the terms and conditions of this Agreement and any other franchise or other agreements you or your Owners may have with us;
- (2) you must pay any amounts owed to us or REMAX, LLC which are unpaid, including the entire unpaid balance of any promissory note with us and any interest due on such note;
- (3) at least 30 days prior to the date of the proposed transfer, you must submit to us for our review and prior approval all proposed transfer or assignment documents, including any purchase and sale agreements to be executed in connection with such transfer or assignment, which documents must be acceptable to us;
- (4) you must submit to us current, accurate financial statements and other documents of the proposed transferee(s) or assignee(s) sufficient to enable us to determine and to either approve or disapprove, in our sole discretion, the character, creditworthiness, business experience, professional credentials and ethical background of the proposed transferee(s) or assignee(s);
- (5) the transferee(s) or assignee(s) must meet our then current subjective and objective standards for new franchisees, including, if then applicable, those relating to relevant experience, education and licensing, background and past record of compliance with laws, financial capacity, skills, integrity and other qualities of character. The transferee(s) or assignee(s) must also execute a form authorizing REMAX Regional or REMAX, LLC to obtain a consumer report and to conduct a credit and background check;
- (6) the transferee(s) or assignee(s), if appropriate as determined by us, must agree to attend and complete to our satisfaction the RE/MAX Initial Education Program then being offered by us;
- (7) if your lease or sublease for the Premises requires it, the landlord of the Premises must have consented to the assignment of the lease or sublease of the Premises to the transferee(s) or assignee(s);
- (8) you must pay us a transfer fee equal to $2,500 plus any amounts necessary to cover other costs, such as administrative and legal expenses, we may incur in connection with such transfer or assignment (REMAX Regional's costs could be significantly higher than the transfer fee depending upon the nature and complexity of the transaction);
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, there are specific conditions under which a franchisee can transfer or assign their franchise agreement or ownership interest. The conditions vary depending on whether the interest being transferred is a controlling interest (greater than 50% ownership) or a non-controlling interest. For transfers of less than a controlling interest, Remax will not unreasonably withhold consent to qualified individuals but reserves the right to impose reasonable conditions.
For transfers or assignments of the entire agreement or a controlling interest, Remax will not unreasonably withhold consent if the proposed transferee demonstrates sufficient business experience, aptitude, qualifications, and financial resources. Remax has historically favored transfers to individuals or entities closely held by individuals and has generally prohibited transfers to competitors or entities controlled by competitors.
Remax may also require compliance with several conditions before or at the time of assignment or transfer. These include ensuring the franchisee and their owners are in compliance with all agreements, payment of outstanding amounts owed to Remax, submission of transfer documents for review, and providing financial statements of the proposed transferee. The transferee must meet Remax's standards for new franchisees, authorize credit and background checks, and potentially complete the RE/MAX Initial Education Program. Consent from the landlord for lease assignment may also be required. Additionally, the franchisee must purchase an extended reporting period endorsement covering a period of 3 years from the date of transfer of the Agreement.
In the event of death, incompetency, or permanent disability of the franchisee or an owner, the personal representative has a reasonable time, not exceeding 6 months, to sell or transfer the interest to an approved person, subject to the standard transfer conditions. Alternatively, the personal representative may choose to close the office and terminate the agreement within that 6-month period, provided all owners agree, 60 days written notice is given, all outstanding fees are paid, and a termination and mutual release agreement is signed. During this period, the office must be supervised by a licensed real estate broker who meets Remax's management qualifications. Failure to meet these conditions can result in immediate termination of the agreement.