For how long after termination, expiration, or non-renewal of the Remax franchise agreement are franchisees and related parties restricted from engaging in competitive activities?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that: upon (i) termination of this Agreement for cause, including for Abandonment of the Office; or (ii) the expiration of this Agreement and the Franchise without proper renewal after you have provided a notice of
intent to renew as required by the Agreement; or (iii) the non-renewal of this Agreement after failure to provide proper notice of intent to renew as prescribed in this Agreement, neither you nor your Owners, officers or guarantors, nor any of their spouses or domestic partners will, for a period of 1 year from the effective date of Abandonment, termination, expiration, or non-renewal:
- (1) become, directly or indirectly, as an officer, director, shareholder, member, licensee, partner, or manager of, or otherwise directly or indirectly operate, manage, own, or have any ownership interest in:
- (i) any existing or newly created real estate brokerage business that is a licensee, franchisee or affiliate of any franchising organization or non-franchised network, including but not limited to a virtual brokerage that competes with REMAX Regional or its Related Parties; or
- (ii) any franchising organization or non-franchised business of 2 or more offices that competes with REMAX Regional or its Related Parties (including but not limited to any franchising organization or non-franchised business of 2 or more offices that is related to the Abandonment of the Office, or to the termination or non-renewal of this Agreement and any other franchise agreements between you and REMAX Regional); or
- (iii) a virtual brokerage whose products or services compete with the products and services offered by RE/MAX offices, REMAX Regional or any of REMAX Regional's Related Parties, or
- (2) sell the assets of the Office to a licensee, franchisee or affiliate of any franchising organization or non-franchised network, including but not limited to a virtual real estate brokerage business whose products or services compete with the products and services offered by RE/MAX offices or REMAX Regional or its Related Parties.
Nothing in this Subsection shall be deemed to restrict affiliation solely as a real estate agent with a franchisee of any franchising organization or non-franchised network. However, for a period of 1 year from the effective date of Abandonment, termination, expiration, or non-renewal, you and your Owners, officers and guarantors, as well as your and their spouses and domestic partners, will be restricted from affiliating with a virtual based brokerage in which you receive a revenue stream or are soliciting or have solicited your current or former Sales Associates to affiliate with such virtual brokerage.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees and related parties face a one-year non-compete obligation under certain conditions after the termination, expiration, or non-renewal of the franchise agreement. Specifically, this restriction applies if the agreement is terminated for cause, including abandonment of the office, or if the agreement expires or is not renewed after the franchisee provides or fails to provide proper notice of intent to renew. During this one-year period, the franchisee, their owners, officers, guarantors, spouses, and domestic partners are restricted from engaging in competitive activities.
This non-compete clause prevents these individuals from becoming involved, directly or indirectly, in any existing or newly created real estate brokerage business that is a licensee, franchisee, or affiliate of any franchising organization or non-franchised network that competes with Remax Regional or its related parties. This includes virtual brokerages and any franchising organization or non-franchised business with two or more offices that compete with Remax Regional. Additionally, franchisees are restricted from selling the assets of their office to any competing entity.
However, the FDD clarifies that merely affiliating as a real estate agent with a franchisee of another organization is not restricted. There is an additional restriction for one year, preventing franchisees and related parties from affiliating with a virtual-based brokerage where they receive a revenue stream or solicit current or former sales associates to join. These post-termination restrictions are designed to protect Remax's market position and proprietary information, and franchisees should carefully consider these limitations before entering into an agreement.