How does Remax define 'Intellectual Property' in its franchise disclosure document?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Additionally, Franchisee agrees to cooperate with both REMAX Regional and REMAX, LLC in executing any additional documents or performing any further acts that may be required to protect the RE/MAX Marks, trade secrets, proprietary information, and other intellectual property, as well as to facilitate compliance with all applicable laws and regulations.
Contractor acknowledges that if he or she submits any unsolicited or solicited ideas, proposals, suggestions, works, or similar submissions, including any recommendations or ideas for marketing and advertising, services, products, technology, product improvements or enhancements or other content (collectively referred to as "Submissions"), the following terms apply to those Submissions, regardless of whether Contractor's communication or Submission contains other terms.
Contractor agrees that: (i) the Submissions, including any related intellectual property rights, will become RE/MAX,LLC's property automatically when Contractor submits them to REMAX, LLC, and without any compensation to Contractor; (ii) REMAX, LLC is not restricted in its use of the Submissions and may use them in any way, including giving them to others; and (iii) there is no obligation to keep Submissions confidential or to attribute them to Contractor in any way.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, Remax requires franchisees to cooperate in protecting the RE/MAX Marks, trade secrets, proprietary information, and other intellectual property. The franchisor also states that if a contractor submits any unsolicited or solicited ideas, proposals, suggestions, works, or similar submissions, including any recommendations or ideas for marketing and advertising, services, products, technology, product improvements or enhancements or other content (collectively referred to as "Submissions"), the intellectual property rights related to those submissions will automatically become RE/MAX, LLC's property without any compensation to the contractor.
This means that Remax franchisees must actively help Remax protect its brand and confidential information. Furthermore, any ideas or suggestions a franchisee or their contractors submit to Remax automatically become the property of Remax, which Remax can use without compensating the franchisee.
This clause is fairly typical in franchising, as franchisors need to maintain control over their brand and system. However, it is important for franchisees to understand that any creative ideas they contribute to the Remax system become the property of the franchisor. Franchisees should carefully consider this when deciding whether to share innovative ideas with Remax.
Prospective franchisees should be aware of these conditions and seek clarification from Remax regarding the specific types of information considered trade secrets or proprietary information. Understanding these obligations is crucial for a successful and legally sound franchise relationship with Remax.