Does the 'Payment and Cancellations' section of the Remax franchise agreement survive termination only with respect to fees due and unpaid?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
rmination of this Agreement, or the Abandonment of the Office, will continue in full force and effect after and notwithstanding such expiration, termination, or Abandonment until such obligations are satisfied in full or by their nature expire.
E. MONETARY OBLIGATIONS NOT RELEASED.
Termination or expiration of this Agreement, or Abandonment of the Office, shall not terminate any monetary obligation that you may owe to us or REMAX, LLC or to any other person or entity as may be required by this Agreement, and shall not entitle you to any refund of any monies previously paid pursuant to this Agreement.
F. TERMINATION NOT EXCLUSIVE REMEDY.
Termination of this Agreement by us shall not be an exclusive remedy and shall not in any way affect our rights, or the rights of REMAX, LLC, to receive or collect fees, dues or other amounts required to have been paid by you under this Agreement, to enforce the provisions of this Agreement against you or to sue for damages or to pursue any other legal or equitable remedy for a breach of this Agreement by you.
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.
G. RIGHT TO MEET WITH SALES ASSOCIATES.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the termination of the franchise agreement does not affect Remax's rights to collect outstanding fees, dues, or other amounts owed by the franchisee. Remax retains the right to enforce the provisions of the agreement and pursue legal remedies for any breaches, meaning that the payment obligations survive termination. This ensures that Remax can recover any financial losses incurred due to the franchisee's non-compliance or early termination.
Specifically, Remax is entitled to collect Monthly Ongoing Fees, Marketing Fund fees, Hot Air Balloon Fund fees (if applicable), Regional Development fees (if applicable), Lost Future Revenue, and all other unpaid amounts owed to Remax and REMAX, LLC, even after termination or expiration of the franchise. The franchisee is obligated to pay these amounts within 5 days after the termination date or at any later date when the amounts due are determined. This clause protects Remax's financial interests by ensuring that franchisees cannot avoid their financial obligations simply by terminating the agreement.
Furthermore, if a Remax franchisee received any Franchisee Incentives and defaults on their obligations, Remax has the right to terminate their eligibility for current and future incentives. If the default is not cured, or if the franchisee abandons the office, Remax can demand repayment of any Franchisee Incentives received prior to the default. This provision underscores the importance of fulfilling contractual obligations and the potential financial repercussions of failing to do so. The continuation of payment obligations post-termination is a standard practice in franchising, designed to protect the franchisor's revenue streams and ensure accountability among franchisees.