factual

What must a Remax contractor do with Proprietary Materials upon termination or expiration of the agreement without renewal?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

  • A. Proprietary Materials.Contractor acknowledges that the sales plans, programs, manuals, rosters, forms, contracts, agreements, brochures and other training, listing and sales materials provided hereunder by, and the information gained from, the files or business of Broker or Franchisor/Regional, irrespective of the origin or ultimate source (collectively, the "Proprietary Materials"), are and shall remain the exclusive property of their source, be it Broker, Franchisor or Regional. Upon termination or expiration of this Agreement, without Renewal, Contractor shall promptly return to Broker the original and all copies of the Proprietary Materials in Contractor's possession and shall not, after such termination or expiration use, copy, or reproduce any aspect of the Proprietary Materials for any reason, or permit, suffer or tolerate the use of the Proprietary Materials for Contractor's own advantage or the advantage of others.

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

What This Means (2025 FDD)

According to Remax's 2025 Franchise Disclosure Document, a contractor's obligations regarding Proprietary Materials upon termination or expiration of the agreement without renewal are clearly defined. The Proprietary Materials encompass sales plans, programs, manuals, rosters, forms, contracts, agreements, brochures, and other training, listing, and sales materials provided by Remax, the Broker, or the Regional entity. These materials, along with information gained from the files or business of the Broker or Remax, remain the exclusive property of their source, whether it be the Broker, Remax, or the Regional entity.

Upon termination or expiration of the agreement without renewal, the contractor is required to promptly return to the Broker the original and all copies of the Proprietary Materials in their possession. This includes all physical and electronic copies of the materials. Furthermore, the contractor is strictly prohibited from using, copying, or reproducing any aspect of the Proprietary Materials for any reason after the termination or expiration of the agreement.

The contractor is also forbidden from permitting, suffering, or tolerating the use of the Proprietary Materials for their own advantage or the advantage of others. This provision is designed to protect Remax's confidential business information and intellectual property, ensuring that former contractors do not use these materials to compete unfairly with Remax or its franchisees. This is a standard practice in franchising to maintain brand consistency and protect proprietary information.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.