If a Remax franchisee operates exclusively as a commercial real estate franchise, what document are they required to sign?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If you, at any time, fail to operate the Office exclusively as a Commercial Real Estate Office, it will constitute a material default of an essential condition of the Franchise Agreement and we shall have the right to immediately terminate the Franchise Agreement effective upon delivery of notice of termination to you.
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- You agree to refer all Residential Property transactions to a RE/MAX residential real estate office, as provided in Subsection 8.H. of the Franchise Agreement. Nothing in this Addendum shall be construed to prohibit you from receiving referral fees on any Residential Property so referred.
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- You understand and acknowledge that you are not being granted an exclusive right to engage in commercial real estate activity and that any RE/MAX real estate office that presently exists or that may be established in the future may have Sales Associates that engage in commercial real estate activity, may have "commercial divisions" or may operate exclusively as a commercial real estate office.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 81)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, if a franchisee fails to operate their office exclusively as a Commercial Real Estate Office, it will constitute a material default of an essential condition of the Franchise Agreement. In this case, Remax has the right to immediately terminate the Franchise Agreement effective upon delivery of notice of termination to the franchisee.
In addition to the above, the franchisee must agree to refer all Residential Property transactions to a RE/MAX residential real estate office, as provided in Subsection 8.H. of the Franchise Agreement. However, the franchisee is able to receive referral fees on any Residential Property so referred.
Finally, the franchisee must understand and acknowledge that they are not being granted an exclusive right to engage in commercial real estate activity and that any RE/MAX real estate office that presently exists or that may be established in the future may have Sales Associates that engage in commercial real estate activity, may have "commercial divisions" or may operate exclusively as a commercial real estate office. The document that the franchisee must sign in this case is an addendum to the franchise agreement.