How are 'Laws' defined within the Remax franchise disclosure document?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
(9) your or any of your Owners' real estate license is suspended or revoked by the governing real estate commission; or you or any of your Owners or your or your Owners' spouses or domestic partners, Sales Associates or other persons affiliated with or represented as being affiliated with your Office materially violate laws applicable to real estate brokerage and related activities or are convicted of or plead no contest to any crime or offense or engage in other conduct or activity that REMAX Regional reasonably believes adversely affects or is likely to adversely affect the reputation or image of the Office, other RE/MAX offices or RE/MAX Affiliates, REMAX, LLC, or the goodwill associated with the RE/MAX Marks or the System; or you or any of your Owners engage in any other conduct or activity that is unprofessional, unethical, dishonest or disruptive to the effective operation of the Office;
(10) you fail to comply with any federal, state or local law applicable to the operation of the Franchise within 10 days after notification of noncompliance from us or any applicable agency;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the term 'laws' is referenced within the context of compliance and potential violations that could impact the franchise agreement. Specifically, the document outlines scenarios where a Remax franchisee's failure to comply with applicable laws could lead to repercussions.
The franchise agreement stipulates that a franchisee's failure to comply with any federal, state, or local law applicable to the operation of the franchise within 10 days after notification of noncompliance can result in consequences. Additionally, if a franchisee, their owners, or anyone affiliated with their office violates laws applicable to real estate brokerage and related activities, or engages in conduct that adversely affects the reputation of Remax, it can also lead to action from Remax. These provisions underscore the importance of adhering to legal and ethical standards in operating a Remax franchise.
These stipulations in the Remax franchise agreement serve to protect the brand's reputation and ensure that franchisees operate within legal and ethical boundaries. For a prospective franchisee, this highlights the necessity of understanding and complying with all relevant laws and regulations pertaining to real estate brokerage and franchise operations. Failure to do so not only risks the franchise but also potentially exposes the franchisee to legal liabilities.