What are the consequences if a Remax franchisee's real estate license is suspended or revoked?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- (9) your or any of your Owners' real estate license is suspended or revoked by the governing real estate commission; or you or any of your Owners or your or your Owners' spouses or domestic partners, Sales Associates or other persons affiliated with or represented as being affiliated with your Office materially violate laws applicable to real estate brokerage and related activities or are convicted of or plead no contest to any crime or offense or engage in other conduct or activity that REMAX Regional reasonably believes adversely affects or is likely to adversely affect the reputation or image of the Office, other RE/MAX offices or RE/MAX Affiliates, REMAX, LLC, or the goodwill associated with the RE/MAX Marks or the System; or you or any of your Owners engage in any other conduct or activity that is unprofessional, unethical, dishonest or disruptive to the effective operation of the Office;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee's or any of their owners' real estate license is suspended or revoked by the governing real estate commission, it can lead to significant consequences under the franchise agreement. Specifically, this situation can trigger a breach of the agreement.
Remax outlines additional scenarios that could lead to a breach, including violations of real estate laws, conviction of a crime, or any conduct that Remax reasonably believes could negatively impact the reputation of the Remax brand. The agreement also covers failure to comply with federal, state, or local laws, violation of anti-terrorism laws or the Foreign Corrupt Practices Act (FCPA), and misrepresentations made to Remax. These stipulations highlight Remax's emphasis on maintaining a high standard of legal and ethical conduct among its franchisees.
These provisions underscore the importance of franchisees and their owners maintaining valid real estate licenses and adhering to all applicable laws and ethical standards. Failure to do so not only risks the operation of the franchise but also carries the potential for broader reputational damage to the Remax brand. Prospective franchisees should carefully consider these requirements and ensure they can meet these obligations to avoid potential breaches of the franchise agreement.