What constitutes a material default of the Remax franchise agreement related to the use of RE/MAX Marks, and what consequences can arise from such a default?

B. SYSTEM STANDARDS AND OFFICE MATERIALS.

(1) Office Materials.

We or REMAX, LLC will issue to you during the Term of the Franchise one or more printed or electronic copies of office materials containing trademark, graphic and other standards, recommendations and other information relating to your obligations under this Agreement, your use of the RE/MAX Marks and the general operation of the Office ("Office Materials"). The entire contents of the Office Materials will remain confidential and the property of REMAX, LLC and must be returned to us upon transfer, expiration, or termination of this Agreement or upon Abandonment of the Office. REMAX, LLC will have the right to add to and otherwise modify the Office Materials from time to time, if deemed necessary to improve the standards of service or quality or the efficient operation of the Office, to protect or maintain the goodwill associated with the RE/MAX Marks or to meet competition. Such additions or modifications may be made by amendment or supplement to the Office Materials or by bulletins, notices or other written or electronic materials as REMAX, LLC may publish from time to time. No such addition or modification, however, shall alter your fundamental status and rights under this Agreement.

(2) You Control the Office.

You acknowledge and agree that the development and operation of the Office in accordance with the System, this Agreement and the Brand Standards is essential to preserve the reputation and high standards of quality and service of RE/MAX offices and the goodwill associated with the RE/MAX Marks. You further acknowledge and agree that the mandatory elements of the System contained in the Brand Standards Manual have been established for the purpose of preserving such reputation, standards and goodwill, but do not, and are not intended to, govern or control the day-to-day affairs, activities or business of the Office or the means and manner by which you conduct the operations of the Office, which shall always be your responsibility and subject to your discretion and control.

F. TERMINATION NOT EXCLUSIVE REMEDY.

Termination of this Agreement by us shall not be an exclusive remedy and shall not in any way affect our rights, or the rights of REMAX, LLC, to receive or collect fees, dues or other amounts required to have been paid by you under this Agreement, to enforce the provisions of this Agreement against you or to sue for damages or to pursue any other legal or equitable remedy for a breach of this Agreement by you.

G. RIGHT TO MEET WITH SALES ASSOCIATES.

In order to facilitate an orderly and efficient transition and to preserve the goodwill associated with the RE/MAX brand and RE/MAX Marks in the event of termination or expiration of this Agreement, or Abandonment of the Office, you agree that we shall have the right to contact and communicate personally with any or all of your Sales Associates to solicit and/or to discuss with them their options for continued affiliation with other RE/MAX offices and/or opportunities to purchase a RE/MAX franchise:

K. ERRORS AND OMISSIONS INSURANCE.

You agree that immediately after the termination or expiration of the Franchise, or the Abandonment of the Office, you will purchase an extended reporting period endorsement covering a period of 3 years from the date of termination of this Agreement or the Abandonment of the Office (as set forth in more detail in Subsection 8.D.).

Source: Item 22 — Contracts (FDD pages 108–334)