Does the Remax agreement require Licensor's signature to be binding on the Customer?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
THE SUBMISSION OF THIS AGREEMENT TO YOU DOES NOT CONSTITUTE AN OFFER AND THIS AGREEMENT SHALL NOT BE BINDING ON US UNLESS AND UNTIL IT IS ACCEPTED BY US, THAT IS, SIGNED BY OUR AUTHORIZED OFFICER AND RETURNED TO YOU.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the franchise agreement is not binding on Remax until it is signed by an authorized officer of Remax and returned to the franchisee. This means that even after a prospective franchisee signs the agreement and submits it, Remax retains the right to reject the agreement.
This clause protects Remax by ensuring that they have the final say in who becomes a franchisee. It allows Remax to review the application and ensure that the prospective franchisee meets all of their requirements before committing to the franchise relationship. The prospective franchisee should be aware that the agreement is not final until they receive a signed copy back from Remax.
This requirement is fairly standard in franchising. It is important for prospective franchisees to understand that the submission of an agreement does not guarantee its acceptance. Franchisees should confirm that they have received the fully executed agreement to ensure that the franchise relationship is officially established.