Under what condition is a Remax franchisee prohibited from establishing a Team Office?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
notice; or
- B. As set forth in Subsection 1.A.d of this Amendment, Franchisee fails to have at least two Sales Associates registered with the Team Office at any time or breaches any other non-monetary provision set forth in this Amendment and fails to cure such default within 30 days of receipt of written notice.
Such notice will advise Franchisee, and Franchisee hereby understands and agrees, that if the default is not cured within the specified time period, this Amendment and Franchisee's right to operate the Team Office will automatically terminate without further notice from us. In the
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the Team Office concept may be discontinued at any time, which means no renewals will be granted for any Team Office.
If a Remax franchisee's franchise relationship is renewed, Remax Regional may permit the franchisee to continue operation of the Team Office provided that, at least 90 days prior to the expiration of the Franchise Agreement, the franchisee pays a $500 Team Office renewal fee and executes the form of amendment Remax Regional is then using for the grant of rights to a Team Office. The amendment shall supersede the existing amendment and may have terms materially different than the current amendment.
This indicates that while Remax allows for Team Offices under certain conditions, it retains the right to discontinue the program entirely, preventing franchisees from renewing their Team Office agreements. Prospective franchisees should inquire about the long-term prospects and potential risks associated with investing in a Team Office, given the possibility of the program's discontinuation.