What is the deadline for Remax and the franchisee to agree on an office location after the Agreement Date?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If the location of the Premises has not been selected and approved as of the Agreement Date, and the parties cannot agree on a mutually acceptable location within 90 days of the Agreement Date, it will be deemed to be a failure of a material condition precedent entitling us to terminate this Agreement without refund of the initial franchise fee.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the franchisee and Remax Regional must agree on an office location within 90 days of the Agreement Date. If a mutually acceptable location is not agreed upon within this timeframe, it is considered a failure of a material condition, which entitles Remax to terminate the Franchise Agreement. In the event of termination due to failure to agree on a location, Remax will not refund the initial franchise fee.
This condition underscores the importance of thorough location research and proactive communication with Remax Regional. Prospective franchisees should engage in detailed discussions with Remax early in the process to ensure alignment on suitable locations. Franchisees should also independently investigate potential locations to ensure they meet their expectations for revenue and suitability.
This requirement is fairly standard in the franchise industry, as the location of the business is critical to its success. The 90-day period provides a defined timeframe for both parties to evaluate potential sites and come to an agreement. The franchisee bears the responsibility of ensuring that the chosen location does not infringe on any third-party rights related to the trade name.