Besides Permitted Real Estate Service Activities, under what conditions can a Remax franchisee conduct another business or generate revenue from other activities at the RE/MAX real estate office?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
stitute an assurance, representation or warranty of any kind, express or implied, as to the suitability of the location for the Office or as to the profitability of a RE/MAX office operated at that location. You further acknowledge and agree that you have independently investigated the suitability of the location of the Office, and that REMAX Regional will not be responsible if the Office fails to meet your expectations as to revenue or otherwise. You may only operate the Office for the purpose of providing Permitted Real Estate Service Activities as defined below; the Office may not be used to conduct another business or to generate revenue from any other activities, except with our prior written consent, which may be withheld in our sole discretion.
(2) Permitted Real Estate Services.
"Permitted Real Estate Service Activities," for purposes of this Agreement, means activities directly related to the business of listing, offering, selling, purchasing, exchanging and managing real property and the providing of marketing or consulting services or other activities with respect to auctioning, leasing or renting of real property or representing sellers, purchasers, lessors or renters of real property. Permitted Real Estate Service Activities expressly excludes: (a) all non-real estate related activity; (b) the offering or performing of ancillary real estate services or activities, including without limitation, title insurance or searches, mortgage brokerage and mortgage origination, insurance or insurance-related services or products, escrow or appraisal services and home inspection services; and (c) activities related to the business of listing, offering, selling, purchasing, exchanging or managing virtual, metaverse or digital property or real estate ("Digital Property"), or any activities related to the auctioning, leasing or renting of Digital Property or representing sellers, purchasers, lessors, renters or users of Digital Property. Subject to the restrictions set forth in Subsection 5.F., you may perform these or other non-real estate related or ancillary services, and you may engage in businesses that offer such services, provided you:
- a. Obtain REMAX Regional's prior written consent;
- b. Do not use the System or the RE/MAX Marks in any manner in connection with such non-real estate related or ancillary services or businesses or in connection with any other services or businesses that are not Permitted Real Estate Service Activities;
- c.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee may not use their RE/MAX office to conduct another business or generate revenue from activities other than Permitted Real Estate Service Activities without prior written consent from REMAX Regional. This consent can be withheld at their sole discretion.
If a Remax franchisee wants to perform non-real estate related or ancillary services, or engage in businesses that offer such services, they must first obtain REMAX Regional's prior written consent. Furthermore, the franchisee cannot use the RE/MAX System or RE/MAX Marks in connection with these non-real estate related activities. The franchisee must also properly segregate the operations of these services or businesses from the operation of the RE/MAX office, potentially requiring the formation of a separate legal entity. Finally, the franchisee must be in full compliance with all applicable federal, state, and local laws, ordinances, and regulations.
Permitted Real Estate Service Activities include activities directly related to listing, offering, selling, purchasing, exchanging, and managing real property. It also includes providing marketing or consulting services, auctioning, leasing, or renting real property, and representing sellers, purchasers, lessors, or renters of real property. However, it expressly excludes non-real estate related activities, ancillary real estate services like title insurance, mortgage brokerage, insurance services, escrow, appraisal services, and home inspection services. It also excludes activities related to virtual, metaverse, or digital property.