Under what circumstances do the prohibitions upon termination or expiration of the Remax agreement, as outlined in Subparagraphs 12.A. and 12.B., not apply?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Applicability of Prohibitions.The prohibitions upon termination or expiration of this Agreement as set forth in Subparagraphs 12.A. and 12.B. shall not affect the rights and privileges which may be conferred upon Contractor by any contract establishing an affiliation with another RE/MAX franchisee subsequent to such termination or expiration.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the prohibitions on termination or expiration of the agreement, as detailed in Subparagraphs 12.A. and 12.B., do not affect the rights and privileges conferred upon a contractor (franchisee) through any contract establishing an affiliation with another Remax franchisee after such termination or expiration.
In simpler terms, if a Remax franchisee's agreement is terminated or expires, the restrictions outlined in Subparagraphs 12.A. and 12.B. do not prevent them from forming an affiliation with a different, existing Remax franchisee under a new contract. This means a former franchisee is not barred from re-entering the Remax system by joining another franchisee's operation.
This provision offers some flexibility for franchisees whose agreements end, allowing them to potentially continue working within the Remax network under a different franchise. However, it is crucial to understand the specific prohibitions outlined in Subparagraphs 12.A. and 12.B. to fully grasp the implications of this exception. A prospective franchisee should carefully review these subparagraphs and seek clarification from Remax regarding any limitations or conditions that may apply.