Under the Remax agreement, what specific obligations are exempt from the force majeure clause?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
"Force Majeure" means an event that prevents our or your performance that is not the fault of or within the reasonable control of the party claiming Force Majeure. Force Majeure includes acts of god, fires, strikes, war, terrorism, riot, governmental laws or regulations, or any other similar event or cause rendering performance of the contract impossible. Except with respect to payment obligations, neither party shall be deemed to be in breach of this Agreement if a party's failure to perform its obligations results from Force Majeure and any delay resulting from Force Majeure will extend performance accordingly or excuse performance in whole or in part as may be reasonable. Force Majeure does not include the Franchisee's financial inability to perform, inability to obtain financing, inability to obtain permits or licenses or any other similar events unique to the Franchisee or to general economic downturn or conditions.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the force majeure clause does not apply to payment obligations. The force majeure clause excuses a party's failure to perform its obligations if it results from events outside their control, such as natural disasters, strikes, or governmental regulations. However, this protection does not extend to the franchisee's payment obligations under the agreement.
This means that even if a force majeure event occurs, such as a natural disaster that impacts a Remax franchisee's ability to operate, the franchisee is still responsible for fulfilling their payment obligations to Remax. This could include royalty fees, marketing fees, or other payments outlined in the franchise agreement.
The FDD also specifies that the force majeure clause does not cover the franchisee's financial inability to perform, inability to obtain financing, inability to obtain permits or licenses, or any other similar events unique to the franchisee or to general economic downturn or conditions. Therefore, a Remax franchisee cannot claim force majeure to excuse non-payment due to financial difficulties or economic downturns.