What is the required action if any event occurs that renders the anti-terrorism certifications, representations, and warranties incorrect for a Remax franchisee or their owners?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Owners agree to comply with and/or to assist us to the fullest extent possible in our efforts to comply with Anti-Terrorism Laws (as defined below). In connection with such compliance, you certify, represent, and warrant that neither your nor your Owner's property or interests are subject to being "blocked" under any of the Anti-Terrorism Laws, and that neither you nor your Owners are otherwise in violation of any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" means United States Department of State Executive Order 13224, the USA PATRIOT Act, and all other present and future U.S. federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by you, any of your Owners, or any of your or your Owners' employees, or any "blocking" of your or any of your Owners' assets under the under the Anti-Terrorism Laws, shall constitute grounds for immediate termination of this Agreement and any other agreement that you or any of your Owners has entered into with us (or any of our Related Parties) in accordance with the termination provisions of this Agreement.
You shall notify us in writing immediately of the occurrence of any event that renders the foregoing certifications, representations and warranties of this Subsection 8.N. incorrect.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if any event occurs that causes the anti-terrorism certifications, representations, and warranties to become incorrect, the franchisee must notify Remax in writing immediately. This requirement is part of the franchisee's covenant concerning anti-terrorism.
The FDD specifies that franchisees and their owners must comply with Anti-Terrorism Laws, which include United States Department of State Executive Order 13224, the USA PATRIOT Act, and all other present and future U.S. federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Franchisees certify, represent, and warrant that neither they nor their owners' property or interests are subject to being "blocked" under any of the Anti-Terrorism Laws, and that neither they nor their owners are otherwise in violation of any of the Anti-Terrorism Laws.
Any violation of the Anti-Terrorism Laws or any "blocking" of assets under these laws constitutes grounds for immediate termination of the Franchise Agreement and any other agreements with Remax or its related parties. This underscores the importance of franchisees maintaining compliance and immediately reporting any changes that could affect their compliance status. This requirement ensures that Remax can take swift action to address any potential risks and maintain its compliance with applicable laws and regulations.
This clause places a significant responsibility on the Remax franchisee to remain vigilant and proactive in monitoring their compliance with anti-terrorism laws. The immediate notification requirement is crucial, as any delay could have severe consequences, including termination of the franchise agreement. Prospective franchisees should carefully review these requirements and ensure they have systems in place to monitor and report any relevant changes promptly.