For a Remax franchise, is the location of the real estate services office subject to approval by RE/MAX Integrated Regions, LLC?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Franchise Agreement ("Agreement") is effective as of | , 20 ("Agreement Date"). The |
|---|---|
| parties to this Agreement are you, | as Franchise Owner, us, RE/MAX |
| Integrated Regions, LLC, a Delaware limited liability company and, if you are a partnership, corporation, limited | |
| liability company or other business entity, your Owners (defined below). This Agreement is for a RE/MAX® real | |
| estate services office to be located at: | [subject to |
| approval by RE/MAX Integrated Regions, LLC] ("Premises") and operated under the trade name | |
| [subject to approval by RE/MAX Integrated Regions, LLC]. |
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the location of a Remax real estate services office is subject to approval by RE/MAX Regional. Specifically, the franchise agreement states that the RE/MAX real estate services office is to be located at a premises that is subject to approval by RE/MAX Integrated Regions, LLC. The trade name under which the office operates is also subject to approval.
If a mutually acceptable location cannot be agreed upon within 90 days of the agreement date, it will be considered a failure of a material condition. This failure entitles Remax to terminate the agreement without refunding the initial franchise fee. However, Remax's approval of the location does not provide any assurance or warranty regarding the suitability of the location or the potential profitability of the office.
This means that while Remax must approve the location, the franchisee bears the responsibility for independently investigating the location's suitability and potential for success. Remax will not be held responsible if the office fails to meet the franchisee's expectations in terms of revenue or other factors. This is a common practice in franchising, where the franchisor sets brand standards and approves locations, but the franchisee ultimately carries the risk of the location's performance.