Under what conditions must a Remax franchisee obtain prior written consent from REMAX Regional?
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.
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:
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee must obtain prior written consent from REMAX Regional under various conditions, primarily related to the transfer or assignment of the franchise agreement or any controlling interest in the franchise. Remax emphasizes the importance of maintaining strong business relationships with individual franchise owners and ensuring that the franchise remains the owner's principal focus.
Remax outlines specific scenarios where consent is required, including situations where the franchisee or their owners propose to transfer the agreement, franchise assets, or a controlling interest. Remax may not unreasonably withhold consent if the proposed transferee demonstrates sufficient business experience, aptitude, qualifications, and financial resources to operate the office successfully and meets Remax's criteria for franchise ownership. However, Remax explicitly reserves the right to withhold consent from transfers to institutions like financial institutions or entities that compete with Remax's offerings.
Furthermore, Remax may require certain conditions to be met before or during the transfer or assignment. These conditions include ensuring that the franchisee and their owners comply with all existing agreements, paying any outstanding amounts owed to Remax, submitting all proposed transfer documents for review at least 30 days in advance, and providing financial statements and documents of the proposed transferee for evaluation. The transferee must also meet Remax's standards for new franchisees, including relevant experience, education, licensing, financial capacity, and integrity. These stipulations ensure that any transfer maintains the quality and standards of the Remax brand.