What is the purpose of the Commercial Office Addendum to the Remax Franchise Agreement?

According to Remax's 2025 Franchise Disclosure Document, the Commercial Office Addendum serves to modify specific terms and conditions of the standard Franchise Agreement when a franchisee operates a commercial real estate office. The addendum acknowledges that it contains terms and conditions in addition to the standard agreement, and it is incorporated in its entirety as part of the Franchise Agreement. In cases where the terms of the addendum differ from or conflict with the standard Franchise Agreement, the addendum takes precedence.

One key aspect of the addendum is that if a franchisee fails to operate the office exclusively as a commercial real estate office, it constitutes a material default of the Franchise Agreement, potentially leading to immediate termination by Remax. However, the franchisee is allowed to refer residential property transactions to a RE/MAX residential real estate office and receive referral fees for those transactions.

The addendum also clarifies that franchisees operating a commercial real estate office are not granted exclusive rights to engage in commercial real estate activity. Other RE/MAX offices, whether existing or established in the future, may also have sales associates involved in commercial real estate or operate exclusively as commercial offices. This ensures that Remax retains flexibility in its franchise operations and does not limit commercial real estate activities to specific franchisees. The addendum can only be amended through a written instrument signed by all parties involved.