What constitutes a failure to actively operate the Remax Office that could lead to immediate termination?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be in material default of an essential condition of this Agreement and we have the right to terminate this Agreement effective upon delivery of notice of termination to you and without providing an opportunity to cure, if:
- (4) you voluntarily abandon, surrender, transfer control of or lose the right to occupy the Premises, or fail to actively operate the Office, for a period in excess of 5 consecutive business days, unless your failure to do so is caused by fire, flood, earthquake or other similar cause beyond your reasonable control, as more fully set forth in Subsection 15.AA.;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, failing to actively operate the office can lead to immediate termination of the franchise agreement. Specifically, if a Remax franchisee voluntarily abandons, surrenders control, or loses the right to occupy the premises, or fails to actively operate the office for more than five consecutive business days, Remax has the right to terminate the agreement.
However, there is an exception: this termination clause does not apply if the failure to operate is due to events beyond the franchisee's control, such as fire, flood, earthquake, or other similar causes. This exception is further detailed in Subsection 15.AA of the agreement, which likely defines what constitutes a 'cause beyond your reasonable control'.
This provision underscores the importance of continuous operation for a Remax franchise. Prospective franchisees should carefully consider their ability to maintain consistent business operations and have contingency plans in place for potential disruptions. Understanding the specific events that qualify as 'Force Majeure' under Subsection 15.AA is also crucial to avoid unintentional breaches of the franchise agreement.