If future changes to the Remax agreement are unacceptable to the Customer, 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 RE/MAX organization, provided these standards 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 necessary due to changes in governing law.
If a franchisee finds future changes to the Remax agreement unacceptable, the FDD does not explicitly detail a procedure for the franchisee to terminate the agreement based solely on disagreement with these changes. The agreement stipulates that modifications generally require mutual consent, but it also allows Remax to unilaterally implement changes to brand standards related to the RE/MAX Marks or those mandated by law.
Given this, a prospective franchisee should directly inquire with Remax about the specific conditions under which a franchisee can terminate the agreement if they do not agree with future modifications, particularly those unilaterally implemented by Remax. Understanding these conditions is crucial for assessing the flexibility and potential risks associated with the franchise agreement.