How far in advance of the expiration of the current agreement must a Remax franchisee execute the renewal franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You are reminded that Subsection 2.E.(8) of the Franchise Agreement states as follows:
- (8) At least 90 days prior to the expiration of this Agreement, you execute the form of franchise agreement (including the renewal addendum and additional supplemental agreements then being used by us, including if applicable to you, the current form of Team Office Amendment) we are then customarily using to grant franchises for RE/MAX offices, which agreement and renewal addendum shall take effect on the day after this Agreement expires, and which will supersede this Agreement and may have materially different and less favorable terms than this Agreement, including without limitation, requirements to upgrade equipment and facilities, use new systems and procedures, pay higher fees, dues and marketing fund contributions, and meet higher minimum agent counts; and
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, a franchisee must execute the renewal franchise agreement at least 90 days prior to the expiration of the current agreement. This agreement includes the renewal addendum and any additional supplemental agreements that Remax is using at the time for granting franchises. The renewal agreement takes effect the day after the current agreement expires and supersedes the original agreement.
This requirement ensures that Remax franchisees meet all obligations and standards before being granted another franchise term. The new agreement may contain materially different and less favorable terms than the original agreement, potentially including requirements to upgrade equipment and facilities, adopt new systems and procedures, pay higher fees, dues, and marketing fund contributions, or meet higher minimum agent counts. Franchisees should carefully review the renewal agreement to understand any changes.
Failure to execute the renewal agreement within the specified timeframe could result in the franchise expiring at the end of its term. Remax may also contact the franchisee's Sales Associates to discuss their options for continued affiliation with other Remax offices. Therefore, it is crucial for franchisees to adhere to the 90-day deadline to ensure a smooth renewal process and avoid any disruptions to their business operations.