What action must a Remax franchisee take if any event occurs that makes their representations and warranties regarding the United States Foreign Corrupt Practices Act incorrect?

According to Remax's 2025 Franchise Disclosure Document, a franchisee must immediately notify Remax in writing if any event occurs that makes their representations and warranties regarding compliance with the United States Foreign Corrupt Practices Act (FCPA) incorrect. This requirement is part of the franchise agreement and emphasizes the importance of adhering to the FCPA, which prohibits bribing foreign officials. The FCPA aims to prevent companies and individuals from using corrupt practices to gain an unfair business advantage in foreign countries.

This notification requirement places a significant responsibility on the Remax franchisee and their owners to monitor their business activities and ensure ongoing compliance with the FCPA. It is not enough to simply agree to comply at the outset; the franchisee must remain vigilant and transparent throughout the term of the agreement. This includes staying informed about changes in the law and implementing internal controls to prevent violations. The franchisee's representations and warranties extend not only to their own actions but also to those of their owners, officers, and employees.

For a prospective Remax franchisee, this means understanding the FCPA and establishing procedures to ensure compliance. They should consult with legal counsel to develop a compliance program tailored to their specific business operations. This program should include training for employees, due diligence on foreign partners, and mechanisms for reporting potential violations. By taking these steps, a franchisee can minimize the risk of FCPA violations and fulfill their obligation to notify Remax of any potential issues.