What materials must a Remax franchisee deliver to Remax Regional upon termination, as outlined in Subsection 8.B of the Franchise Agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be in material default of an essential condition of this Agreement and we have the right to terminate this Agreement effective upon delivery of notice of termination to you and without providing an opportunity to cure, if:
- (1) you and REMAX Regional, acting reasonably and in good faith, have not agreed on a location for the Office within 90 days of the Agreement Date;
- (2) you fail to open the Office and begin business operations in compliance with the terms and provisions of this Agreement within 180 days of the Agreement Date;
- (3) you or your Owner responsible for the Office fails to attend, prior to the opening of the Office or within 30 days of the Agreement Date, whichever is sooner, the RE/MAX Initial Education Program that REMAX, LLC conducts for new franchisees;
- (4) you voluntarily abandon, surrender, transfer control of or lose the right to occupy the Premises, or fail to actively operate the Office, for a period in excess of 5 consecutive business days, unless your failure to do so is caused by fire, flood, earthquake or other similar cause beyond your reasonable control, as more fully set forth in Subsection 15.AA.;
- (5) you or any of your Owners sell, lease, convey, give away, subfranchise, sublicense, pledge, mortgage, assign, transfer, encumber or otherwise dispose of any direct or indirect interest in this Agreement, the Franchise, the assets of the Franchise or Office or any interest in violation of the provisions of Section 12 of this Agreement;
- (6) a voluntary or involuntary petition in bankruptcy is filed by or against you or any of your Owners unless such petition is set aside, withdrawn or ceases to be in effect within 20 days of the date of any such filing;
- (7) you or one of your Owners or the Business Entity is declared or judicially determined to be insolvent or all or a substantial part of your or your Owner's assets are assigned to or for the benefit of any creditor, or you admit your inability to pay your debts as they become due, or a liquidator, trustee in bankruptcy, custodian, receiver, receiver and manager, sheriff, or any other officer with similar powers is appointed temporarily or permanently, either privately or by a court of competent authority for or over you, one of your Owners or over the Business Entity;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
Based on the 2025 Remax Franchise Disclosure Document, Subsection 8.B outlines the conditions for immediate termination of the agreement by Remax Regional, but it does not specify any materials that the franchisee must deliver to Remax Regional upon termination. The document states that Remax Regional has the right to terminate the agreement effective upon delivery of notice of termination to the franchisee without providing an opportunity to cure under certain conditions.
Other sections of the FDD discuss obligations related to termination, such as purchasing an extended reporting period endorsement for errors and omissions insurance, as detailed in Subsection 8.D and Section K. Additionally, if operating a Team Office, the franchisee must comply with de-identification requirements as outlined in Section 14 of the Franchise Agreement upon termination of the Team Office Amendment.
However, the FDD does not explicitly list specific materials that must be returned or delivered to Remax Regional upon termination within Subsection 8.B. A prospective franchisee should clarify with Remax what specific documents, records, or other materials, if any, are required to be returned or delivered to Remax Regional in the event of termination under Subsection 8.B to ensure full compliance with the franchise agreement.