Can Remax or its affiliates establish other franchised or company-owned outlets, even in close proximity to a Remax franchisee's office?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
obtaining professional credits. (Franchise Agreement Subsections 9.D. and 9.F.) You will be responsible for all costs and expenses (including travel, meals, lodging and entertainment) associated with attending the conventions and the various conferences and classes. (Franchise Agreement Subsections 9.D. and 9.F.)
TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. You are granted the right to operate the Office at a specific address-only location that first must be approved by REMAX, LLC. You may not relocate the Office without REMAX, LLC's prior written consent. The Franchise Agreement does not give you any right of first refusal, option or any other right to purchase, acquire, or open any additional RE/MAX office franchises, although you may, under certain circumstances, be granted the right to open one or more Team Offices (see discussion below). REMAX, LLC or any of REMAX, LLC's affiliates may establish other franchised or company owned outlets at any location whatsoever, including a location in close proximity to your Office and that may compete with your location. REMAX, LLC retains all rights to develop, locate and operate, and to grant others the right to develop, locate and operate, real estate brokerage offices under another trademark or service mark or any other business under the Marks or under any other trademark or service mark or to engage in any other business activity anywhere even if such RE/MAX office or other office has an adverse impact on your business.
Renewals
If you have an existing franchise relationship under a franchise agreement that granted you an address-only location, you will be required to sign our current form of franchise agreement (attached as Exhibit A), as well as the "Renewal Addendum to Franchise Agreement - Address Only" (attached as Exhibit A-1). This renewal addendum creates or clarifies certain terms and conditions that apply to your relationship as a franchisee only if you are renewing an existing franchise relationship; they do not apply if you are a new purchaser of a RE/MAX franchise or if you are purchasing an existing RE/MAX franchise.
Source: Item 12 — TERRITORY (FDD pages 71–75)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee will not receive an exclusive territory. Remax, LLC or its affiliates have the right to establish other franchised or company-owned outlets at any location, even in close proximity to a franchisee's office, which may then compete with the franchisee's location. Remax also retains all rights to develop, locate, and operate real estate brokerage offices under other trademarks or service marks or any other business, even if such an office has an adverse impact on a franchisee's business.
This means that a Remax franchisee could face direct competition from other Remax franchises or company-owned offices, even in the same area. This lack of territorial exclusivity is a significant factor for prospective franchisees to consider, as it directly impacts their potential market share and profitability. The franchisee's agreement grants the right to operate an office at a specific, approved address, but does not offer any right of first refusal or option to acquire or open additional Remax franchises, although under certain circumstances, a franchisee may be granted the right to open one or more Team Offices.
Remax Regional or Remax, LLC may also establish company-owned outlets using the Remax marks. Additionally, Remax, LLC or its affiliates may acquire existing Remax real estate offices or independent real estate brokerage companies and convert them to Remax offices. For example, affiliates of Remax, LLC once operated Remax franchises in Oregon, Washington, Virginia, and Maryland. Remax, LLC or its affiliates may in the future acquire existing Remax offices and/or independent real estate companies. This further emphasizes the non-exclusive nature of a Remax franchise and the potential for increased competition in a franchisee's market area.