Under what conditions will Remax issue a replacement note?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Replacement of Note.
Upon receipt of evidence satisfactory to the Borrower of the loss, theft, destruction or mutilation of this Note and, in the case of any such mutilation, upon surrender and cancellation of the Note, upon receipt of an indemnity reasonably satisfactory to the Borrower, the Borrower will issue a new Note of like tenor (and, in the case of any new Note, dated the date to which interest has been paid, if any), in lieu of such lost, stolen, destroyed or mutilated Note.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax will issue a replacement note under specific circumstances related to the original note's condition. Specifically, Remax will provide a new note if the original is lost, stolen, destroyed, or mutilated.
For a Remax franchisee to receive a replacement note, they must first provide evidence satisfactory to Remax regarding the loss, theft, destruction, or mutilation of the original note. In the case of mutilation, the franchisee must surrender and cancel the original note. Additionally, the franchisee must provide an indemnity that is reasonably satisfactory to Remax to protect against potential losses or liabilities associated with the missing or damaged note.
If these conditions are met, Remax will issue a new note with the same terms as the original. If interest has already been paid on the original note, the new note will be dated to reflect the date to which interest has been paid. This ensures continuity and avoids any disruption in the financial obligations between the franchisee and Remax.