Does Remax's right to terminate the franchise agreement for a specific default imply that Remax cannot terminate the agreement for other defaults?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Reference to our ability to terminate this Agreement for a specific default shall not create an implication that we do not have the right to terminate this Agreement for other defaults.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax's ability to terminate the franchise agreement for a specific default does not imply that they cannot terminate the agreement for other defaults. The franchise agreement explicitly states that references to Remax's ability to terminate for a specific default do not create an implication that they lack the right to terminate for other defaults. This means Remax retains the right to terminate the agreement for any valid reason, even if not specifically listed.
This clause protects Remax's interests by ensuring that the enumeration of specific termination rights does not limit their broader ability to enforce the franchise agreement. It prevents franchisees from arguing that, because a particular default is not explicitly mentioned, Remax is prevented from terminating the agreement due to that default.
For a prospective Remax franchisee, this means understanding that Remax has broad termination rights beyond those specifically listed. Franchisees must comply with all aspects of the franchise agreement, not just those tied to explicit termination clauses, to avoid potential termination. This provision is fairly standard in franchise agreements, as franchisors aim to maintain comprehensive control over their brand and network.