Does the Remax franchise agreement allow a franchisee to acquire any ownership interest in the goodwill associated with the RE/MAX Marks?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that: (i) REMAX, LLC is the exclusive owner of the RE/MAX Marks and that such marks are invaluable assets of REMAX, LLC; (ii) your license to use the RE/MAX Marks is derived solely from this Agreement and is limited to the Licensed Use that is otherwise in compliance with this Agreement; and (iii) all use of the RE/MAX Marks, and any goodwill established by such use, including, without limitation, the use of the term "RE/MAX" in the trade name you adopt for your Office, will inure exclusively to the benefit of REMAX, LLC, and that the same will automatically vest in and remain the exclusive property of REMAX, LLC. You further acknowledge and agree that under this Agreement you shall not acquire any right, ownership or other interests in or to: (i) the RE/MAX Marks, other than the Limited License granted herein, or (ii) the goodwill associated with the RE/MAX Marks.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, franchisees do not acquire any ownership interest in the goodwill associated with the RE/MAX Marks. The agreement explicitly states that REMAX, LLC is the exclusive owner of the RE/MAX Marks, which are considered invaluable assets. The franchisee's license to use these marks is solely derived from the franchise agreement and is limited to the specific uses outlined within the agreement.
Any goodwill established through the franchisee's use of the RE/MAX Marks, including the use of the term "RE/MAX" in their office's trade name, automatically benefits REMAX, LLC and remains their exclusive property. The franchise agreement clarifies that franchisees do not gain any rights, ownership, or other interests in either the RE/MAX Marks themselves (beyond the limited license granted) or the goodwill associated with those marks.
This is a standard practice in franchising, as the franchisor needs to maintain control over its brand and image. The goodwill associated with the brand is a significant asset for the franchisor, and allowing franchisees to acquire ownership interests in it could create conflicts and dilute the brand's value. Therefore, prospective Remax franchisees should understand that they are building goodwill for the Remax brand, not for themselves as independent business owners.
This aspect of the franchise agreement underscores the importance of adhering to Remax's brand standards and operational guidelines. While franchisees operate independently, their actions directly impact the overall reputation and goodwill of the Remax brand. Therefore, maintaining high standards of service and professionalism is crucial for all Remax franchisees.