Under what circumstances is Remax (BTRN) not liable to the Receiving Broker/Agent for nonperformance or delay in performing its obligations?

According to Remax's 2025 Franchise Disclosure Document, under the 'Force Majeure' clause, Remax (BTRN) is not liable to the Receiving Broker/Agent for nonperformance or delays in its obligations if such performance is made impossible due to certain events. These events include strikes, industrial actions, riots, war, acts of God, earthquakes, fire, floods, governmental actions, orders or restrictions, supplier failures, internet service provider failures, denial of service attacks, cyber attacks, viruses or other nefarious software, or any other reason beyond Remax's reasonable control. This clause essentially protects Remax from liability when external, uncontrollable events prevent them from fulfilling their contractual duties.

This 'Force Majeure' clause is a fairly standard provision in franchise agreements, designed to allocate risk in the event of unforeseen circumstances. For a prospective Remax franchisee (Receiving Broker/Agent), this means understanding that Remax's performance is not guaranteed under all conditions. If a major disruptive event occurs, Remax may be excused from its obligations, potentially impacting the franchisee's business operations.

It is important for a prospective franchisee to carefully consider the implications of this clause. While it protects Remax from events beyond its control, it also introduces uncertainty for the franchisee. Understanding the types of events covered and the extent to which Remax's obligations are excused is crucial for assessing the potential risks and rewards of investing in a Remax franchise. Franchisees should also inquire about Remax's business continuity plans and how they mitigate the impact of such events on their franchisees.