After the termination of a Remax franchise, what is the scope of the post-termination non-competition agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that: upon (i) termination of this Agreement for cause, including for Abandonment of the Office; or (ii) the expiration of this Agreement and the Franchise without proper renewal after you have provided a notice of
intent to renew as required by the Agreement; or (iii) the non-renewal of this Agreement after failure to provide proper notice of intent to renew as prescribed in this Agreement, neither you nor your Owners, officers or guarantors, nor any of their spouses or domestic partners will, for a period of 1 year from the effective date of Abandonment, termination, expiration, or non-renewal:
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a post-termination non-competition agreement is in place. This agreement stipulates that if the franchise agreement is terminated for cause, including abandonment of the office; or if the agreement expires without proper renewal after the franchisee provides notice of intent to renew; or if the agreement is not renewed due to failure to provide proper notice, then neither the franchisee nor their owners, officers, guarantors, or their spouses or domestic partners will be allowed to compete.
The non-compete period lasts for one year from the effective date of abandonment, termination, expiration, or non-renewal. This restriction applies to the franchisee and affiliated parties.
This non-compete clause is a significant restriction for franchisees considering leaving the Remax system, as it limits their ability to immediately engage in similar real estate activities. Franchisees should carefully consider the implications of this clause, especially if they plan to continue working in the real estate industry after leaving the Remax franchise. It is important to seek legal counsel to fully understand the scope and enforceability of the non-compete agreement in their specific jurisdiction.