Under what circumstances is a Remax franchisee excused from the continuous operation requirement due to Force Majeure?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
B. CONTINUOUS OPERATION.
You agree that you will operate the Office continuously during the Term, and that you will not voluntarily abandon, surrender, transfer control of or lose the right to occupy the Premises or fail to actively operate the Office under the RE/MAX System for a period in excess of 5 consecutive business days ("Abandon" or "Abandonment") unless your failure to do so is caused by Force Majeure, as defined in Subsection 15.AA.
AA. FORCE MAJEURE.
"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.
The party whose performance is affected by an event of Force Majeure shall provide a prompt written request for relief, describing and setting forth the nature of the Force Majeure, an estimate as to its duration, and a plan for resuming full compliance with this Agreement. REMAX Regional will have full discretion whether to grant or deny any request for relief from Franchisee. A party that fails to provide the required notice shall be liable for failure to give such timely notice only to the extent of damage actually caused.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee's obligation to operate their office continuously can be excused under specific circumstances related to Force Majeure. The FDD defines Force Majeure as an event that prevents performance, which is not the fault of, or within the reasonable control of, the party claiming Force Majeure.
Specifically, Force Majeure events include 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. If a Force Majeure event occurs, the affected party must promptly provide written notice describing the event, its estimated duration, and a plan for resuming full compliance with the agreement. Remax Regional retains full discretion to grant or deny any request for relief from the franchisee.
However, the FDD explicitly states that 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 general economic downturn or conditions. Therefore, a Remax franchisee cannot claim Force Majeure due to financial difficulties or typical business challenges. Failing to provide timely notice of a Force Majeure event may result in liability for damages caused by the delay.