What notifications are Remax franchisees obligated to make upon termination of the franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that immediately after the termination or expiration of the Franchise, or the Abandonment of the Office, you will purchase an extended reporting period endorsement covering a period of 3 years from the date of termination of this Agreement or the Abandonment of the Office (as set forth in more detail in Subsection 8.D.).
If you have received any Franchisee Incentives from REMAX Regional and you default in any of your material obligations under this Agreement, including but not limited to your failure to provide proper notice of your intent to renew in accordance with Section 2.E above, REMAX Regional reserves the right to terminate your eligibility for any and all such then-current and future Franchisee Incentives, even if you cure such default. If you fail to cure
any such default within the cure period provided in this Agreement, or if such default cannot be cured, or if you Abandon the Office, REMAX Regional reserves the right to require you on demand to repay any Franchisee Incentives that you received from REMAX Regional prior to such default.
In order to facilitate an orderly and efficient transition and to preserve the goodwill associated with the RE/MAX brand and RE/MAX Marks in the event of termination or expiration of this Agreement, or Abandonment of the Office, you agree that we shall have the right to contact and communicate personally with any or all of your Sales Associates to solicit and/or to discuss with them their options for continued affiliation with other RE/MAX offices and/or opportunities to purchase a RE/MAX franchise:
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
Based on the 2025 Remax Franchise Disclosure Document, upon the termination or expiration of the franchise agreement, or abandonment of the office, Remax franchisees must purchase an extended reporting period endorsement covering three years from the date of termination. This endorsement relates to errors and omissions insurance, as detailed in Subsection 8.D of the agreement.
Additionally, if a Remax franchisee has received any Franchisee Incentives from Remax Regional and defaults on their obligations, including failing to provide proper notice of intent to renew as per Section 2.E, Remax Regional can terminate their eligibility for current and future incentives. If the franchisee fails to cure the default within the provided cure period, or if the default cannot be cured, or if the franchisee abandons the office, Remax Regional can demand repayment of any Franchisee Incentives received prior to the default.
To ensure an orderly transition and protect the goodwill associated with the Remax brand, Remax has the right to contact and communicate with the franchisee's Sales Associates. This communication aims to discuss their options for continued affiliation with other Remax offices or opportunities to purchase a Remax franchise. This facilitates the preservation of the Remax brand and network during and after the termination or expiration of the agreement.