What must a Remax franchisee do to renew their franchise term?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| The agreement you would sign if you are an existing franchisee and are renewing the Team Office Amendment is attached as Exhibit A-4. | |||
| c. | Requirements for franchisee to renew or extend | Subsection 2.E. of Franchise Agreement and Renewal Addenda Sections 2 and 11 of Team Office Amendment | You can renew the franchise relationship if: • you have complied with the terms of the Franchise Agreement; • you have exercised diligence in developing your Office during the term in a manner acceptable to us; • you sign a form authorizing RE/MAX Regional to obtain a consumer report and conduct a credit and background check; • you provide us with a copy of your current financial statement; • you meet our then current subjective and objective standards for new franchisees; • you provide written notice of election to renew at least 6 months prior to the expiration of the Franchise Agreement; • you complete required educational courses; • you sign the then current form of Franchise Agreement, including the then current form of renewal addendum (both of which may have materially different and less favorable terms and conditions from your original contract) at least 90 days prior to the expiration of the Franchise Agreement; and • you pay the renewal fee (or if you are paying the renewal fee in 12 equal payments, then the first monthly payment) at least 90 days prior to the expiration of the Franchise Agreement. If you renew the Team Office Amendment, you will be required to pay the Team Office renewal fee and execute the form of amendment that RE/MAX Regional is then using for the grant of rights to a Team Office. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 81–88)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee can renew their franchise agreement if they meet several conditions. These conditions include complying with the existing Franchise Agreement terms and demonstrating diligence in developing their office in a manner acceptable to Remax.
Additionally, the franchisee must authorize Remax Regional to obtain a consumer report and conduct credit and background checks. They must also provide a current financial statement and meet Remax's standards for new franchisees, which may be subjective and objective at the time of renewal. The franchisee needs to provide written notice of their intent to renew at least six months before the expiration of the current agreement.
Furthermore, franchisees must complete any required educational courses and sign the then-current form of the Franchise Agreement, including any renewal addendum, at least 90 days before the expiration of the current agreement. It is important to note that the terms and conditions in the renewal agreement may differ significantly and be less favorable than the original contract. Finally, the franchisee must pay the renewal fee (or the first of twelve equal monthly payments) at least 90 days before the expiration of the Franchise Agreement. If renewing a Team Office Amendment, the franchisee must pay the Team Office renewal fee and execute the amendment form Remax Regional is using at that time for granting Team Office rights.
These stipulations highlight that Remax has considerable discretion in the renewal process, particularly regarding the evaluation of the franchisee's performance and the standards they must meet. The potential for less favorable terms in the renewal agreement also underscores the importance of carefully reviewing the renewal documents and negotiating terms where possible. Franchisees should be prepared to meet all requirements and deadlines to ensure a smooth renewal process.