Under what condition related to communication with the franchisor will a RE/MAX franchise be considered to have ceased doing business?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE: SOME INDIVIDUALS WHOSE NAMES APPEAR ON THIS EXHIBIT OWN OTHER RE/MAX OFFICES AND REMAIN IN GOOD STANDING WITHIN THE RE/MAX SYSTEM.
FRANCHISES THAT HAVE BEEN TERMINATED, CANCELLED, NOT RENEWED, OR OTHERWISE CEASED TO DO BUSINESS Between January 1, 2024 and December 31, 2024
OR THAT HAVE NOT COMMUNICATED WITH THE FRANCHISOR WITHIN 10 WEEKS OF THE APPLICATION DATE
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a Remax franchise will be considered to have ceased doing business if it has not communicated with the franchisor within 10 weeks of the application date. This is according to Item 1 in the FDD which lists franchises that have been terminated, cancelled, not renewed, or otherwise ceased to do business between January 1, 2024, and December 31, 2024.
This condition highlights the importance of maintaining regular communication with Remax. For a prospective franchisee, this means ensuring consistent contact with the franchisor to avoid being classified as having ceased operations, even if the business is still running. This requirement could be in place to ensure brand consistency, provide support, or monitor the franchisee's adherence to the franchise agreement.
It is important to note that this lack of communication is measured from the application date, not necessarily from the start of operations. Therefore, prospective Remax franchisees should clarify with Remax what constitutes 'communication' and what the expected frequency and methods of communication should be to remain in good standing. This will help avoid any unintentional breaches of the franchise agreement related to communication.