Regarding Remax franchises, what is the relevant timeframe for franchises that have been terminated, cancelled, not renewed, or otherwise ceased to do business?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
WITHIN THE RE/MAX SYSTEM.
FRANCHISES THAT HAVE BEEN TERMINATED, CANCELLED, NOT RENEWED, OR OTHERWISE CEASED TO DO BUSINESS Between January 1, 2024 and December 31, 2024
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the relevant timeframe for franchises that have been terminated, cancelled, not renewed, or otherwise ceased to do business is between January 1, 2024, and December 31, 2024. This information is crucial for potential franchisees as it provides insight into the stability and turnover rate within the Remax franchise system.
This timeframe is important because it allows prospective franchisees to assess the recent performance and health of the Remax franchise network. By examining the number of franchises that have ceased operations within this period, potential investors can gain a better understanding of the challenges and opportunities associated with owning a Remax franchise. This information is typically presented in Exhibit E of the FDD, which lists franchisees no longer with the system.
In addition to terminations, cancellations, and non-renewals, the timeframe also includes franchises that have not communicated with Remax within 10 weeks of the application date. This detail is significant because it highlights another reason why a franchise might be listed as no longer being in business. It is important to note that some individuals listed may own other Remax offices and remain in good standing within the system, indicating that the closure of one franchise does not necessarily reflect poorly on the franchisee's overall performance or standing with the company.
Prospective franchisees should carefully review this list and consider the reasons behind franchise terminations or non-renewals. Understanding these factors can help them make a more informed decision about investing in a Remax franchise and prepare them for potential challenges they may face as franchisees. It is also advisable to speak with current and former franchisees to gain additional insights into the franchise system and its performance.