If the Regional Agreement is terminated, cancelled, or not renewed, what options does REMAX, LLC have regarding the Franchise Agreement with the franchisee?

According to Remax's 2025 Franchise Disclosure Document, the Regional Agreement dictates the relationship between Remax, the regional entity, and the franchisee. Specifically, if the Regional Agreement is terminated, cancelled, or not renewed, Remax or its designee has the option to acquire the Regional entity's rights and assume its obligations under the Franchise Agreement with the franchisee.

This provision is important for prospective Remax franchisees because it outlines a contingency plan in case the Regional Agreement is disrupted. If the regional entity loses its rights, Remax can step in to maintain the franchise relationship. This protects the franchisee from potentially being left without franchisor support or trademark rights.

However, the FDD also states that if the Regional Agreement is terminated, cancelled, or not renewed, Remax franchisees may not have the right to continue to use the Remax Marks. This creates uncertainty for the franchisee. It is important to note that Remax's decision to assume the Regional entity's obligations is optional, not mandatory. A prospective franchisee should seek clarification from Remax regarding the conditions under which it would or would not assume these obligations.

This clause highlights the interconnectedness of the franchise agreement and the regional agreement. While Remax aims to protect its trademarks and standards, the franchisee's rights are somewhat dependent on the stability of the regional agreement. Therefore, understanding the terms and potential risks associated with the regional agreement is crucial for any prospective Remax franchisee.