Under what circumstances will the Remax franchise terminate?

According to Remax's 2025 Franchise Disclosure Document, there are several circumstances that can lead to the termination of a Remax franchise. One such event is the death or permanent disability of the franchisee or a principal owner. In this case, the interest in the franchise must be sold or transferred to an approved person within six months. If this isn't possible, with 60 days' prior written notice, the Remax office may be closed, provided all outstanding fees have been paid. This provision ensures business continuity or orderly closure in unforeseen circumstances.

Another cause for termination involves non-compliance with non-competition covenants during the franchise term. Specifically, neither the franchisee (nor their owners, if the franchisee is an entity), their spouse or domestic partner, nor their Sales Associates can have any ownership interest in, or perform services for, any other real estate service business or other competitive business anywhere. This restriction is designed to protect Remax's market position and prevent conflicts of interest.

Furthermore, Remax outlines non-competition covenants that apply after the franchise is terminated for cause, including abandonment of the office, expiration without proper renewal after providing notice of intent to renew, or non-renewal after failing to provide notice of intent to renew. In these cases, for a period of one year, the franchisee, their owners, officers, guarantors, and their spouses or domestic partners are restricted from operating, managing, owning, or having an interest in certain competing real estate businesses. These include (i) existing or newly created real estate brokerage businesses that are licensees, franchisees, or affiliates of any franchising organization or non-franchised network including but not limited to a virtual brokerage that competes with RE/MAX Regional or RE/MAX, LLC; (ii) any franchising organization or non-franchised business of 2 or more offices that competes with RE/MAX Regional or REMAX, LLC; or (iii) a virtual brokerage whose products or services compete with the products or services offered by RE/MAX offices, RE/MAX Regional, or REMAX, LLC, nor may you sell the assets of the office to a licensee, franchisee or affiliate of any franchising organization or non-franchised network, including but not limited to a virtual real estate brokerage business whose products or services compete with the products and services offered by RE/MAX offices, RE/MAX Regional or REMAX, LLC. These post-termination restrictions are intended to further protect Remax's competitive advantage and prevent former franchisees from directly competing using knowledge gained during their franchise term. However, the franchisee will not be restricted from affiliation solely as a real estate agent with a franchisee of any franchising organization or non-franchised network. For a period of 1 year from the effective date of Abandonment, termination, expiration, or non-renewal, the franchisee and their Owners, officers and guarantors, as well as their and their spouses and domestic partners, will be restricted from affiliating with a virtual brokerage in which they receive a revenue stream or are soliciting or have solicited their current or former Sales Associates to affiliate with such virtual brokerage.