What is the timeframe for a final judgment against a Remax franchisee to be satisfied before it constitutes a breach of the agreement?
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 the franchisee is a business entity, a final judgment against the business entity that remains unsatisfied for 30 days constitutes a material default of the franchise agreement. This means that if a court issues a final judgment against the Remax franchisee's business, the franchisee has 30 days to satisfy the judgment.
Additionally, if a levy of execution is made upon the business entity or any property used by the business entity, the franchisee has only 5 days to discharge the levy. A "levy of execution" is a legal process where a court orders the seizure and sale of a debtor's property to satisfy a judgment.
Failure to satisfy a final judgment within 30 days or discharge a levy of execution within 5 days can result in Remax terminating the franchise agreement without providing an opportunity to cure the default. This could have significant financial and operational consequences for the franchisee, including loss of the franchise and potential legal liabilities.