Under what circumstances might Remax Regional require a franchise term longer than 5 years?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | Subsection 2.A. of Franchise Agreement Section 10 of Team Office Amendment | 5 years. However, to facilitate mergers or conversions, RE/MAX Regional may require a franchise term of at least 6 years but not greater than 10 years. Additionally, to accommodate existing franchisees that acquire additional offices, RE/MAX Regional may provide for a longer franchise term. Commences when the Team Office Amendment is signed and will terminate upon the transfer, termination, abandonment, or expiration of the Franchise Agreement unless earlier terminated pursuant to the terms of the Team Office Amendment. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 81–88)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the standard franchise term is 5 years. However, Remax Regional has the option to require a franchise term between 6 and 10 years to facilitate mergers or conversions. Additionally, Remax Regional may offer a longer franchise term to existing franchisees who acquire additional offices.
For a prospective franchisee, this means that the initial franchise agreement is typically for 5 years, but there are circumstances where this could be extended. If Remax Regional is undergoing mergers or conversions, new franchisees may be required to sign an agreement for a longer term, up to 10 years. This could provide more stability for the franchisee, but it also means a longer commitment to the Remax system.
Existing franchisees should also be aware that acquiring additional offices could lead to a longer franchise term. This could be beneficial if the franchisee is looking to expand their business and wants the security of a longer agreement. However, it's important to carefully consider the terms of the new agreement, as it may have different conditions than the original franchise agreement. Franchisees should consult with Remax Regional to understand the specific reasons for the extended term and how it will affect their business operations.