Under what conditions might Remax impose requirements for approving the transfer or assignment of less than a controlling interest in a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 for the transfer or assignment of interests totaling less than a controlling interest (defined as greater than 50% ownership). However, Remax reserves the right to impose reasonable conditions as a prerequisite for approval. These conditions may include some or all of the conditions set forth in Subsection 12.D, as deemed appropriate by Remax under the circumstances. This applies whether the franchisee is an individual or a business entity.
For a prospective Remax franchisee, this means that while transferring a minority stake in their franchise is generally permitted, Remax retains the ability to ensure that the new owner meets their standards. This protects the brand and the interests of other franchisees by maintaining a consistent level of quality and competence among its ownership.
The FDD specifies that 'controlling interest' is defined as any interest greater than 50% ownership interest in a proprietorship, partnership, limited liability company, or other type of business entity. If a corporation, controlling interest is defined as any interest greater than 50% of the equity and voting power of all issued and outstanding capital stock. This definition provides clarity for franchisees considering transferring ownership and helps them understand when the more stringent transfer requirements for controlling interests will apply.