factual

What notifications are Remax franchisees required to make to clients, state real estate commissions, and professional associations upon termination of their franchise agreement?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (4) immediately notify your clients, your state real estate commission, and any boards or professional associations that you or your Office may belong to, that your Office is no longer in existence and, unless you have affiliated with another RE/MAX office, that you are no longer affiliated with the RE/MAX organization;

Source: Item 22 — Contracts (FDD pages 108–334)

What This Means (2025 FDD)

According to Remax's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, franchisees have specific notification responsibilities. Unless the franchisee has affiliated with another Remax office, they must immediately inform their clients, the state real estate commission, and any professional associations to which they or their office belong that their office is no longer in operation and that they are no longer affiliated with the Remax organization. This ensures that all relevant parties are aware of the change in affiliation status.

This requirement is in place to maintain transparency and prevent confusion among clients and regulatory bodies. By promptly notifying these entities, Remax aims to uphold its professional standards and protect its brand reputation. The notification to the state real estate commission is particularly important, as it ensures compliance with regulatory requirements and avoids any potential legal issues related to operating without proper affiliation.

For a prospective Remax franchisee, this means being prepared to handle these notifications swiftly and efficiently upon termination. It is crucial to have a system in place to communicate with clients, the real estate commission, and professional associations to ensure a smooth transition. Failure to comply with these notification requirements could result in legal or financial repercussions, so franchisees must understand and adhere to these obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.