Is a Remax franchisee prohibited from selling the assets of their office to a licensee, franchisee, or affiliate of a virtual real estate brokerage business whose products or services compete with the products and services offered by Remax offices or Remax Regional or its Related Parties?

According to the 2025 Remax Franchise Disclosure Document, a Remax franchisee is prohibited from selling the assets of their office to certain entities. Specifically, a franchisee cannot sell their assets to a licensee, franchisee, or affiliate of any franchising organization or non-franchised network, including virtual real estate brokerages, if their products or services compete with those offered by Remax offices, Remax Regional, or its related parties. This restriction is in place to prevent potential conflicts of interest and to protect the Remax brand and network.

This restriction ensures that the Remax franchisee does not facilitate the growth of competing businesses by transferring assets to them. This clause aims to maintain the integrity of the Remax network and prevent franchisees from indirectly supporting rival businesses that could undermine Remax's market position. The FDD emphasizes Remax's right to protect its brand and network from competition.

For a prospective franchisee, this means that when considering selling the assets of their Remax office, they must ensure that the buyer is not affiliated with any competing virtual real estate brokerage or network. Failure to comply with this restriction could result in legal consequences and potential breaches of the franchise agreement. It is crucial for franchisees to conduct thorough due diligence on potential buyers to avoid any conflicts of interest and to seek approval from Remax before finalizing any sale of assets.