What is the timeframe for discharging a levy of execution made upon a Remax franchisee's business entity or property?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) if you are a Business Entity, the Business Entity is seized, taken over or foreclosed by a governmental official in the exercise of its duties, or seized, taken over or foreclosed by a creditor, lien holder or lessor, a final judgment against you remains unsatisfied for 30 days or a levy of execution has been made upon the Business Entity or upon any property used by the Business Entity and it is not discharged within 5 days of such levy;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a levy of execution is made upon a franchisee's business entity or property used by the business entity, the franchisee has a limited time to resolve the situation. Specifically, the franchisee must discharge the levy within 5 days of it being made.
Failure to discharge the levy within this 5-day period constitutes a material default of the franchise agreement. This gives Remax the right to terminate the agreement.
This clause highlights the importance of maintaining a financially stable business. Franchisees should be aware of this strict timeline and take immediate action to address any levies to avoid potential termination of their franchise agreement.