What constitutes a violation of Anti-Terrorism Laws that would allow Remax to immediately terminate the franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Owners agree to comply with and/or to assist us to the fullest extent possible in our efforts to comply with Anti-Terrorism Laws (as defined below). In connection with such compliance, you certify, represent, and warrant that neither your nor your Owner's property or interests are subject to being "blocked" under any of the Anti-Terrorism Laws, and that neither you nor your Owners are otherwise in violation of any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" means United States Department of State Executive Order 13224, the USA PATRIOT Act, and all other present and future U.S. federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by you, any of your Owners, or any of your or your Owners' employees, or any "blocking" of your or any of your Owners' assets under the under the Anti-Terrorism Laws, shall constitute grounds for immediate termination of this Agreement and any other agreement that you or any of your Owners has entered into with us (or any of our Related Parties) in accordance with the termination provisions of this Agreement.
You shall notify us in writing immediately of the occurrence of any event that renders the foregoing certifications, representations and warranties of this Subsection 8.N. incorrect.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee's violation of Anti-Terrorism Laws can lead to immediate termination of the franchise agreement. This includes non-compliance with or failure to assist Remax in complying with Anti-Terrorism Laws. Specifically, if a franchisee or their owners' property or interests are subject to being "blocked" under any Anti-Terrorism Laws, or if they are otherwise in violation of these laws, Remax has grounds for immediate termination. Franchisees must also certify and warrant that they and their owners are not in violation of Anti-Terrorism Laws and that their property is not subject to being blocked under these laws.
The term "Anti-Terrorism Laws" is defined broadly to include United States Department of State Executive Order 13224, the USA PATRIOT Act, and all other present and future U.S. federal, state, and local laws, ordinances, regulations, policies, lists, and any other requirements of any governmental authority addressing or relating to terrorist acts and acts of war. This broad definition means that franchisees must stay informed about a wide range of legal requirements related to anti-terrorism efforts.
Furthermore, the franchisee is obligated to notify Remax immediately in writing if any event occurs that renders their certifications, representations, and warranties regarding compliance with Anti-Terrorism Laws incorrect. This places a significant responsibility on the franchisee to monitor their own compliance and to promptly disclose any potential issues to Remax. Failure to comply with these laws, or failure to report any potential violations, can result in the immediate termination of the franchise agreement and any other agreements with Remax or its related parties.