Under what conditions will any agreement between the Customer and Licensor that existed as of the Effective Date automatically terminate for Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement, together with any other documents incorporated herein by reference and all Product Schedules, constitutes the sole and entire agreement of the Parties with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous understandings, agreements, and representations and warranties, both written and oral, with respect to such subject matter. Customer and Licensor agree that, by entering into this Agreement, any agreement between
Customer and Licensor that existed as of the Effective Date shall automatically terminate on the later of (i) the date that is at least ninety (90) days after the execution of this Agreement or (ii) the date that the Software is successfully launched for the Customer, unless such prior agreements are extended by mutual written agreement.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, any agreement between the Customer and the Licensor that existed as of the Effective Date will automatically terminate under specific conditions. These conditions are designed to ensure a clear transition to the new franchise agreement and to avoid conflicts between prior arrangements and the current franchise terms.
Specifically, any pre-existing agreement will terminate on the later of two dates: either (i) 90 days after the execution of the new agreement, or (ii) the date the software is successfully launched for the customer. This allows a grace period for both parties to adjust to the new agreement and ensures that the franchisee has the necessary tools and systems in place before the old agreements are terminated. However, there is an exception: the prior agreements can be extended if both parties agree to do so in writing.
This provision is important for prospective Remax franchisees because it clarifies the relationship between past and present agreements. It ensures that franchisees are not bound by outdated terms that might conflict with the new franchise agreement, while also providing a reasonable timeframe for transitioning business operations. Franchisees should carefully review any existing agreements with the licensor to understand how this clause will affect them and to determine whether an extension of any prior agreement is necessary and mutually agreeable.