Under what conditions does Remax agree to exercise its rights reasonably or in good faith?

According to Remax's 2025 Franchise Disclosure Document, Remax Regional and the franchisee must act reasonably and in good faith when agreeing on a location for the office. Specifically, if the franchisee and Remax Regional have not agreed on a location for the office within 90 days of the agreement date, it is considered a material default of the franchise agreement. In this case, Remax has the right to terminate the agreement effective immediately upon delivery of the termination notice, without providing an opportunity to cure the default.

This condition is significant for prospective franchisees as it sets a clear timeframe for securing a location. Failure to agree on a location within the stipulated 90-day period can lead to the termination of the franchise agreement. This clause underscores the importance of proactive communication and collaboration between the franchisee and Remax Regional in the initial stages of establishing the franchise.

Many franchise agreements include clauses that require both parties to act in good faith, but the inclusion of a specific timeframe and the consequence of immediate termination for failing to meet this condition is a notable aspect of the Remax franchise agreement. Franchisees should be prepared to actively engage in the site selection process and maintain open communication with Remax Regional to avoid potential default and termination of the agreement.