According to Remax, what constitutes 'Residential Property'?

According to Remax's 2025 Franchise Disclosure Document, 'Residential Property' is defined as real property with residential structures containing four or fewer dwelling units. This definition is particularly relevant for franchisees who operate exclusively as a commercial real estate franchise.

If a Remax franchisee chooses to operate exclusively as a commercial real estate franchise, they must sign a Commercial Office Addendum. This addendum restricts them from offering or engaging in residential real estate brokerage services, as defined by the 'Residential Property' clause. This means that such a franchisee would primarily focus on commercial real estate transactions and would not be involved in the sale or management of properties with four or fewer residential units.

However, the FDD also states that even if operating as a Commercial Real Estate Office, a Remax franchisee may engage in real estate activities involving Residential Property owned personally by them, others affiliated with their office, or by their or their immediate family members. This exception allows for personal real estate dealings without violating the commercial-only agreement. If a franchisee fails to operate the Office exclusively as a Commercial Real Estate Office, it will constitute a material default of an essential condition of the Franchise Agreement and Remax shall have the right to immediately terminate the Franchise Agreement effective upon delivery of notice of termination to the franchisee.