What unpaid amounts must be paid to Remax before a transfer or assignment can be approved?
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:
(1) you and your Owners must be in compliance with the terms and conditions of this Agreement and any other franchise or other agreements you or your Owners may have with us;
(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;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, before a transfer or assignment of the franchise can be approved, the franchisee must pay any amounts owed to Remax or REMAX, LLC which are unpaid. This includes the entire unpaid balance of any promissory note with Remax, as well as any interest due on such note.
This requirement ensures that Remax receives all outstanding payments before a new franchisee takes over. It protects Remax's financial interests and ensures that the franchise is in good standing before the transfer occurs. For a prospective franchisee, this means they need to be diligent in keeping up with all payments and understanding the terms of any promissory notes they have with Remax.
Additionally, the FDD specifies that the franchisee must be in compliance with the terms and conditions of the Franchise Agreement and any other agreements they or their owners may have with Remax. This indicates that any breaches of contract, not just monetary defaults, could prevent a transfer from being approved. Therefore, franchisees need to maintain good standing in all aspects of their relationship with Remax to facilitate a smooth transfer process.