In the event of a crisis, does Remax have an obligation to determine a response?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
In the interest of protecting the RE/MAX brand, RE/MAX Marks and the RE/MAX System, we and/or REMAX, LLC have the absolute right, but not the obligation, to determine a response, including what steps will be taken and what communications will be made, in instances of a Crisis (as defined below), and you agree to comply with and implement our or REMAX, LLC's directions in response to a Crisis with no liability to you or your Sales Associate as a result of our of REMAX, LLC's action or inaction. "Crisis" means an event or development that we
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax and/or REMAX, LLC have the absolute right, but not the obligation, to determine a response in instances of a crisis. A crisis is defined as an event or development that Remax deems could negatively impact the RE/MAX brand, RE/MAX Marks, or the RE/MAX System.
This means that as a Remax franchisee, you cannot rely on Remax to take any specific action or provide any particular guidance during a crisis situation. Remax has the discretion to decide whether or not to respond, and what steps to take if they do respond. The franchisee must comply with and implement Remax's directions in response to a crisis, with no liability to the franchisee or their Sales Associate as a result of Remax's action or inaction.
This lack of obligation could present a risk for franchisees. If a crisis occurs that affects your specific franchise, Remax is not required to step in and assist you. It is important to understand that Remax's primary concern is protecting the overall brand and system, not necessarily the individual franchisee's interests. Therefore, franchisees should have their own crisis management plans in place to address potential issues that could arise.
It is advisable for prospective franchisees to discuss with Remax what types of events they consider to be a "Crisis" and under what circumstances Remax is most likely to take action. Understanding Remax's general approach to crisis management can help you better prepare your own contingency plans and assess the potential risks involved in operating a Remax franchise.