What unpaid amounts must a Remax franchisee pay to Remax, LLC before transferring their franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
(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;
(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, a franchisee must pay all outstanding debts to Remax, LLC before transferring their franchise. This includes any unpaid amounts owed to Remax, LLC, encompassing the entire unpaid balance of any promissory notes and any accrued interest on those notes.
In addition to settling outstanding debts, the franchisee is also responsible for covering a transfer fee of $2,500. This fee is intended to offset administrative and legal expenses that Remax may incur during the transfer process. However, the FDD notes that Remax's actual costs could exceed this transfer fee, depending on the complexity and nature of the transaction.
Therefore, before a transfer can proceed, a Remax franchisee must ensure that all financial obligations to Remax, LLC are fulfilled, including outstanding balances on promissory notes, any interest due, and the $2,500 transfer fee. It is important to note that additional costs beyond the transfer fee may also apply, depending on the specifics of the transfer.