What is the 'MTSA' and its relevance to Remax franchisees?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- Term and Termination.
- 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").
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the 'MTSA' is referenced in the context of the agreement's term and termination. Specifically, the initial term of the franchise agreement continues until the earlier of two conditions: when the customer ceases to be a Remax franchisee, or upon the termination or expiration of the MTSA.
This means the MTSA plays a crucial role in determining the length of the franchise agreement. The agreement's term is directly tied to the MTSA's validity, and any expiration or termination of the MTSA automatically affects the Remax franchise agreement.
For a prospective franchisee, understanding the MTSA is essential. They should inquire about the specifics of the MTSA, including its full name, its duration, the parties involved, and the conditions under which it can be terminated or expire. This knowledge is vital for assessing the long-term viability and stability of their Remax franchise.