If future changes to the Remax agreement are unacceptable, what action must the Customer take to terminate the agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement may not be modified, amended or altered except by an instrument signed by all of the parties to this Agreement. Notwithstanding the preceding sentence, you understand and agree that we or REMAX, LLC may, from time to time, to preserve and enhance the reputation of the RE/MAX organization, issue new (or amend or modify existing) brand standards pertaining to the System, provided that the mandatory elements of the System pertain to the goodwill or protection of the RE/MAX Marks. In addition, you agree that you will execute any amendments or modifications to this Agreement as may from time to time be required as a result of changes in governing law.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the franchise agreement can only be modified, amended, or altered through a written instrument signed by all parties involved. However, Remax or REMAX, LLC can issue new or modify existing brand standards to preserve and enhance the reputation of the Remax organization, as long as the mandatory elements pertain to the goodwill or protection of the RE/MAX Marks. Additionally, franchisees are required to execute amendments or modifications to the agreement that may be required due to changes in governing law.
If a franchisee finds future changes to the Remax agreement unacceptable, the FDD does not explicitly detail a process for the franchisee to terminate the agreement due to these changes. The document outlines Remax's right to modify brand standards and requires franchisees to comply with legal changes, but it does not provide an exit strategy for franchisees who disagree with these modifications.
Given this lack of specific guidance, a prospective Remax franchisee should seek clarification from Remax regarding the process for addressing disagreements with future modifications to the franchise agreement. Specifically, they should inquire about their rights and options if they find the modifications unacceptable, including whether there is a mechanism for negotiation, mediation, or termination under such circumstances. Understanding these aspects is crucial for making an informed decision about investing in a Remax franchise.