Under what conditions might Remax waive interest on financing for acquisition or other growth-related expenses?

According to Remax's 2025 Franchise Disclosure Document, Remax may offer financing for acquisition or other growth-related expenses at their discretion. The amount of financing can cover up to 100% of the associated costs. The repayment term is typically between 36 to 60 months, with an interest rate between 5 and 10%.

Remax may waive the interest on this financing if the franchisee meets all growth goals targeted through the end of the repayment period. Additionally, the franchisee must comply with all other terms and conditions outlined in both the promissory note and the franchise agreement. This creates an incentive for franchisees to achieve specific growth targets, potentially benefiting both the franchisee and Remax through increased business activity.

However, it's important to note that failure to meet these growth goals or any other breach of the promissory note or franchise agreement could result in the interest not being waived. Prospective franchisees should carefully review the terms of the promissory note and franchise agreement to fully understand the conditions for interest waiver and the potential consequences of non-compliance. Understanding these conditions is crucial for financial planning and business strategy.

In the event of late payments under Promissory Note 4, Remax Regional may accelerate payment and refer it for collection. If RE/MAX Regional refers any of the promissory notes to an attorney for collection, all outstanding amounts will bear interest at a default rate of 20% per year (or the highest legally permitted rate) and the franchisee will have to pay RE/MAX Regional's reasonable attorneys' fees and costs. As an additional remedy if you default, RE/MAX Regional may terminate your Franchise Agreement.