What are the potential consequences for a Remax franchisee who does not agree with changes made to the Franchise Agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement may not be modified, amended or altered except by an instrument signed by all of the parties to this Agreement. Notwithstanding the preceding sentence, you understand and agree that we or REMAX, LLC may, from time to time, to preserve and enhance the reputation of the RE/MAX organization, issue new (or amend or modify existing) brand standards pertaining to the System, provided that the mandatory elements of the System pertain to the goodwill or protection of the RE/MAX Marks. In addition, you agree that you will execute any amendments or modifications to this Agreement as may from time to time be required as a result of changes in governing law.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Franchise Agreement can be modified or amended with the signature of all parties involved. However, Remax, LLC can issue new or modify existing brand standards to enhance the brand's reputation, especially concerning the goodwill or protection of the RE/MAX Marks. Franchisees are also required to execute amendments or modifications to the agreement that result from changes in governing law.
If a Remax franchisee does not agree with changes required by governing law, they are still obligated to execute the required amendments or modifications to the Franchise Agreement. Failure to do so could constitute a breach of the agreement. The document does not explicitly detail the consequences of refusing to sign amendments related to brand standards, but it implies adherence is necessary to maintain the RE/MAX brand's integrity.
While the FDD does not explicitly state the consequences of disagreeing with brand standard changes, it is important to note that Remax retains the right to enforce the agreement and pursue legal remedies for breaches. A franchisee's refusal to comply with required changes could potentially lead to disputes, impacting their relationship with the franchisor and potentially resulting in legal action. Prospective franchisees should seek clarification from Remax regarding the specific ramifications of non-compliance with mandatory system standards and required legal amendments.