What is the 'MTSA' referenced in the Remax FDD, and what are the parties involved?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.1 Term. The initial term of this Agreement begins on the Effective Date and, unless terminated as otherwise provided in this Agreement, will continue in effect until the earlier of: (a) the date that Customer ceases to be a RE/MAX franchisee; or (b) the termination or expiration of the MTSA (the "Term").
For the avoidance of doubt, Customer is not and shall not be deemed a third-party beneficiary of the MTSA.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the 'MTSA' is referenced within the context of the agreement's term and third-party beneficiaries. Specifically, the term of the agreement between the Customer (the franchisee) and the Licensor is tied to the MTSA's duration; the agreement remains in effect until the MTSA terminates or expires, or until the Customer is no longer a Remax franchisee.
Furthermore, the FDD clarifies that the Customer (franchisee) is explicitly not considered a third-party beneficiary of the MTSA. However, RE/MAX, LLC, RE/MAX Marketing Fund, LLC, and RE/MAX Promotions, Inc. are designated as third-party beneficiaries and can enforce the rights and benefits as if they were direct parties to the agreement between the Customer and the Licensor.
In practical terms, this means a Remax franchisee's agreement is linked to the MTSA, which could be a Master Territory Sales Agreement or a similar arrangement. The franchisee's rights and obligations are governed by their agreement with the Licensor, but they do not have any direct rights or benefits under the MTSA itself. The franchisor and its related entities retain the ability to enforce aspects of the agreement as third-party beneficiaries, adding another layer of oversight and potential enforcement.
Prospective franchisees should seek clarification from Remax regarding the specifics of the MTSA, including its full name, purpose, parties involved, and how its terms might affect the franchisee's operations and the overall franchise agreement. Understanding the MTSA's implications is crucial for assessing the stability and potential longevity of the franchise relationship.