What are the franchisee's obligations regarding site selection and acquisition/lease as outlined in Item 9, and how does Remax assist with this process as described in Item 11?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in agreement | Disclosure document item |
|---|---|---|
| a. Site selection and acquisition/lease | Subsections 2.A. and 2.C., Section 3, and Subsection 13.B.(1) of Franchise Agreement | Items 7, 11 and 12 |
Before you open the Office, RE/MAX Regional or REMAX, LLC will:
At your request, assist you in selecting the Office's location which must be approved by RE/MAX Regional. (Franchise Agreement - Subsections 2.A. and 2.C.) RE/MAX Regional's criteria for a location include population density, the number of competing real estate offices in the surrounding area, your financial capability to maintain the Office at the particular location, public access to the Office, parking availability, the location's public appeal and professional image and the proximity to other RE/MAX offices.
You may not begin operating the Office until a location has been selected and approved.
We will respond to your location request within 30 days after you submit it.
If you and RE/MAX Regional, acting reasonably and in good faith, cannot agree on a location for the Office within 90 days after the Franchise Agreement is signed, unless otherwise agreed, it will be deemed to be a failure of a material condition precedent to the Franchise Agreement entitling RE/MAX Regional to terminate the Franchise Agreement.
Failure to open the Office within 180 days after the Franchise Agreement is signed will also be deemed to be a failure of a material condition precedent to the Franchise Agreement entitling RE/MAX Regional to terminate the Franchise Agreement.
Your initial franchise fee is not refundable if you fail to locate an acceptable site for your Office or you do not open your Office within 180 days after the Franchise Agreement is signed.
RE/MAX Regional does not own the premises upon which the Office is located and therefore does not lease it to you.
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees have obligations regarding site selection and acquisition/lease, as detailed in the Franchise Agreement's Subsections 2.A. and 2.C., Section 3, and Subsection 13.B.(1). Item 9 of the FDD outlines these obligations, while Items 7, 11, and 12 provide further details. This means that franchisees must actively engage in the process of finding and securing a suitable location for their Remax office, adhering to the guidelines and requirements set forth in the franchise agreement.
Remax offers assistance in site selection before the office opens. At the franchisee's request, RE/MAX Regional will assist in selecting the office location, which must be approved by RE/MAX Regional. The criteria for location approval include population density, the number of competing real estate offices, the franchisee's financial capability to maintain the office at the location, public access, parking availability, public appeal, professional image, and proximity to other Remax offices. Franchisees cannot begin operations until a location is selected and approved.
Remax Regional will respond to location requests within 30 days of submission. If the franchisee and RE/MAX Regional cannot agree on a location within 90 days after signing the Franchise Agreement, it may be considered a failure of a material condition, potentially leading to termination of the agreement, unless otherwise agreed. Similarly, failure to open the office within 180 days after the Franchise Agreement is signed can also result in termination. The initial franchise fee is non-refundable if the franchisee fails to secure an acceptable site or open the office within the specified timeframe. RE/MAX Regional does not lease the office premises to the franchisee.
Prospective Remax franchisees should carefully consider these obligations and assistance provisions. The site selection process is critical, and failure to find an appropriate location within the given timeframe can lead to the loss of the initial franchise fee and termination of the agreement. Franchisees should actively communicate with RE/MAX Regional, seek their guidance, and ensure they meet all the location criteria to avoid potential issues.