If a Remax franchisee continues to operate the office on a month-to-month holdover basis after the expiration of the Franchise Agreement, when does Remax have the right to contact the franchisee's Sales Associates?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to facilitate an orderly and efficient transition and to preserve the goodwill associated with the RE/MAX brand and RE/MAX Marks in the event of termination or expiration of this Agreement, or Abandonment of the Office, you agree that we shall have the right to contact and communicate personally with any or all of your Sales Associates to solicit and/or to discuss with them their options for continued affiliation with other RE/MAX offices and/or opportunities to purchase a RE/MAX franchise:
- (6) upon and at any time after expiration of this Agreement during which, with our permission, you continue to operate the Office on a month-to-month holdover basis as provided in Subsection 2.E of this Agreement.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax has the right to contact and communicate with a franchisee's Sales Associates at any time after the expiration of the Franchise Agreement, if the franchisee continues to operate the office on a month-to-month holdover basis. This communication is intended to discuss the Sales Associates' options for continued affiliation with other Remax offices or opportunities to purchase a Remax franchise.
This provision is designed to facilitate a smooth transition and maintain the goodwill associated with the Remax brand. By allowing Remax to directly contact Sales Associates, it ensures that these associates are aware of their options and can continue their affiliation with Remax, even if the franchisee's agreement has expired or been terminated.
For a prospective Remax franchisee, this means that if they choose not to renew their agreement or if their agreement is terminated, Remax can directly approach their Sales Associates to discuss alternative opportunities within the Remax system. This could potentially impact the franchisee's business, as Sales Associates may choose to move to other Remax offices or pursue their own franchise opportunities. It is important for franchisees to understand this provision and its potential implications for their business and relationships with their Sales Associates.