How can the Remax franchise agreement amendment be modified?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement may not be modified, amended or altered except by an instrument signed by all of the parties to this Agreement. Notwithstanding the preceding sentence, you understand and agree that we or REMAX, LLC may, from time to time, to preserve and enhance the reputation of the RE/MAX organization, issue new (or amend or modify existing) brand standards pertaining to the System, provided that the mandatory elements of the System pertain to the goodwill or protection of the RE/MAX Marks. In addition, you agree that you will execute any amendments or modifications to this Agreement as may from time to time be required as a result of changes in governing law.
This Amendment may not be amended, changed, revised or altered, except by instrument in writing signed by the parties.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, both the franchise agreement and its amendments can only be modified through a written instrument signed by all parties involved. This requirement ensures that any changes to the original agreement or subsequent amendments are mutually agreed upon and documented, providing clarity and legal certainty for both Remax and the franchisee.
For the standard franchise agreement, Remax or REMAX, LLC can issue new or modify existing brand standards to enhance the RE/MAX organization's reputation, as long as these standards pertain to the goodwill or protection of the RE/MAX marks. Franchisees are also required to execute amendments or modifications to the agreement if changes in governing law necessitate them. This allows Remax to adapt the franchise system to maintain brand consistency and comply with legal requirements.
For specific addenda such as the Commercial Office Addendum or Team Office Amendment, the modification process also requires a written instrument signed by all parties. For example, to continue operating a Team Office upon franchise renewal, the franchisee must pay a $500 renewal fee and execute the then-current amendment form used by RE/MAX Regional. This new amendment will supersede the original and may contain materially different terms. This highlights the importance of franchisees carefully reviewing any proposed amendments and understanding their implications before signing.
Overall, the modification process for both the franchise agreement and its amendments emphasizes the need for mutual written consent, ensuring that all parties are aware of and agree to any changes. This protects the interests of both Remax and its franchisees by providing a clear and legally sound framework for adapting the franchise relationship over time.