What agreement sections govern the length of the franchise term for a Remax franchise?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Subsection 2.A. of Franchise Agreement Section 10 of Team Office Amendment | 5 years. However, to facilitate mergers or conversions, RE/MAX Regional may require a franchise term of at least 6 years but not greater than 10 years. Additionally, to accommodate existing franchisees that acquire additional offices, RE/MAX Regional may provide for a longer franchise term. Commences when the Team Office Amendment is signed and will terminate upon the transfer, termination, abandonment, or expiration of the Franchise Agreement unless earlier terminated pursuant to the terms of the Team Office Amendment. |
| b. | Renewal or extension of the term | Subsection 2.E. of Franchise Agreement and Renewal Addendum Sections 2 and 11 of Team Office Amendment | If you meet the requirements for renewal, you may renew by executing the form of franchise agreement used at the time of renewal, which may have materially different terms and conditions than your original Franchise Agreement. The agreement you would sign if you are an existing franchisee and are renewing at this time is Exhibit A and A-1 attached. The renewal term is 5 years although you may be granted a longer term depending upon the renewal provisions in your expiring franchise agreement. If your expiring franchise agreement provides for a renewal term of not more than 5 years, you may be granted up to 10 years if you meet certain criteria as set forth in Subsection 2.E. of the Franchise Agreement. If you meet the requirements for renewal and you renew the franchise relationship, we may permit you to also renew the Team Office Amendment provided you meet the requirements for doing so. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 81–88)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the length of the franchise term is governed by Subsection 2.A. of the Franchise Agreement and Section 10 of the Team Office Amendment. The standard franchise term is 5 years. However, Remax Regional has the option to modify the franchise term to be between 6 and 10 years to facilitate mergers or conversions. Additionally, Remax Regional may offer a longer franchise term to existing franchisees who acquire additional offices. The franchise term commences upon signing the Team Office Amendment and terminates upon the transfer, termination, abandonment, or expiration of the Franchise Agreement, unless terminated earlier according to the Team Office Amendment's terms.
For Remax franchisees considering renewal or extension of their franchise term, Subsection 2.E. of the Franchise Agreement, the Renewal Addendum, and Sections 2 and 11 of the Team Office Amendment dictate the process. If a franchisee meets the renewal requirements, they can renew by executing the franchise agreement form used at the time of renewal, which may contain significantly different terms and conditions from the original agreement. The renewal term is typically 5 years, but a longer term may be granted depending on the renewal provisions in the expiring franchise agreement. If the expiring agreement provides for a renewal term of 5 years or less, a term of up to 10 years may be granted if certain criteria outlined in Subsection 2.E. of the Franchise Agreement are met.
It is important for prospective Remax franchisees to understand that the terms of the franchise agreement, including the length of the term and renewal conditions, can vary and are subject to change at the time of renewal. The franchisor may also offer different terms based on specific circumstances, such as mergers, acquisitions, or the addition of new offices. Therefore, it is crucial to carefully review the specific terms of the Franchise Agreement and any related amendments or addenda before investing in a Remax franchise.