Under what circumstances does the post-termination non-competition agreement apply to a Remax franchisee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that: upon (i) termination of this Agreement for cause, including for Abandonment of the Office; or (ii) the expiration of this Agreement and the Franchise without proper renewal after you have provided a notice of
intent to renew as required by the Agreement; or (iii) the non-renewal of this Agreement after failure to provide proper notice of intent to renew as prescribed in this Agreement, neither you nor your Owners, officers or guarantors, nor any of their spouses or domestic partners will, for a period of 1 year from the effective date of Abandonment, termination, expiration, or non-renewal:
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the post-termination non-competition agreement applies under specific conditions related to the termination, expiration, or non-renewal of the franchise agreement. This agreement restricts the franchisee, their owners, officers, guarantors, and their spouses or domestic partners from engaging in competitive activities for one year.
The non-compete is triggered if the franchise agreement is terminated for cause, including abandonment of the office. It also applies if the agreement expires and the franchise is not properly renewed after the franchisee provides a notice of intent to renew as required by the agreement. Furthermore, the non-compete takes effect if the agreement is not renewed due to the franchisee's failure to provide proper notice of intent to renew, as outlined in the agreement.
This non-competition agreement means that upon the occurrence of any of the listed events, the franchisee and related parties are restricted from engaging in similar real estate business activities that would compete with Remax for a period of one year. This restriction is designed to protect Remax's market position and brand reputation by preventing former franchisees from leveraging their experience and knowledge gained during their affiliation with Remax to directly compete against them immediately after the termination or non-renewal of their franchise agreement.