Under the Remax agreement, what recourse does the customer have if future changes to the agreement are unacceptable?

According to Remax's 2025 Franchise Disclosure Document, the franchise agreement can only be modified, amended, or altered through a written instrument signed by all parties involved. However, Remax, LLC, retains the right to issue new or modify existing brand standards to preserve and enhance the reputation of the Remax organization, as long as these mandatory elements pertain to the goodwill or protection of the Remax Marks. Additionally, franchisees are required to execute amendments or modifications to the agreement that may be necessary due to changes in governing law.

This means that while the core agreement requires mutual consent for changes, Remax has the power to unilaterally impose new brand standards related to its trademarks and goodwill. Franchisees must also comply with amendments required by legal changes. This creates a situation where a franchisee might find certain changes unacceptable but still be bound to implement them.

For a prospective Remax franchisee, this highlights the importance of understanding the scope of potential brand standard changes and the implications of being required to adopt amendments due to legal changes. While franchisees have a say in modifications to the core agreement, they must also be prepared to adapt to changes initiated by Remax to protect its brand or comply with the law. It would be prudent for a potential franchisee to seek clarification from Remax regarding the types of brand standards that might be implemented and the potential financial impact of such changes.

In the franchise industry, it is common for franchisors to retain some flexibility in modifying brand standards to maintain consistency and competitiveness. However, the extent of these unilateral changes can vary. A prospective franchisee should carefully evaluate the potential impact of these types of clauses on their business before entering into a franchise agreement.