Under what conditions can REMAX, LLC terminate the Regional Agreements with RE/MAX Regional?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
In Minnesota and Wisconsin, RE/MAX Regional derives the right to use the Marks by virtue of the regional agreements that it acquired from Integra Midwest, the Predecessor Region described in Item 1, on July 21, 2021.The regional agreement between the Predecessor Region and REMAX, LLC, dated September 19, 1986 (for the state of Minnesota) was automatically renewed for a twenty (20) year term in 2017 (the "Minnesota Regional Agreement"). The regional agreement between the Predecessor Region and REMAX, LLC, dated October 31, 1977 (for the state of Wisconsin) was automatically renewed in 2017 for another 20-year period (the "Wisconsin Regional Agreement"). The Minnesota Regional Agreement and the Wisconsin Regional Agreement (collectively the "Regional Agreements") authorize RE/MAX Regional to sell franchises for RE/MAX offices in Minnesota and Wisconsin. REMAX, LLC may terminate the Regional Agreements, under certain conditions, if RE/MAX Regional materially violates their terms. If the applicable Regional Agreement is terminated, cancelled, or not renewed, REMAX, LLC or its designee may, at its option, acquire RE/MAX Regional's rights and assume its obligations under the Franchise Agreement with you.
In Indiana, RE/MAX Regional derives the right to use the Marks by virtue of the regional agreement that it acquired from RE/MAX Indiana, the Predecessor Region described in Item 1, on July 21, 2021. The regional agreement between Predecessor Region and REMAX, LLC dated April 30, 1987, as amended from time to time, was automatically renewed for a 20-year period in 2007. The Regional Agreement authorizes RE/MAX Regional to sell franchises for RE/MAX offices in Indiana. REMAX, LLC may terminate the Regional Agreement, under certain conditions, if RE/MAX Regional materially violates its terms. If the Regional Agreement is terminated, cancelled, or not renewed, RE/MAX franchisees may not have the right to continue to use the RE/MAX Marks. If the Regional Agreement is terminated, REMAX, LLC or its designee may, at its option, acquire RE/MAX Regional's rights and assume its obligations under the Franchise Agreement with you.
In Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont, RE/MAX Regional derives the right to use the Marks by virtue of the regional agreements that it acquired from Integra New England, the Predecessor Region described in Item 1, on July 21, 2021.The regional agreement between the Predecessor Region and REMAX, LLC, dated December 20, 1984 (for the states of Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont) was automatically renewed for a twenty (20) year term in 2004; it may be amended or restated from time to time and is renewable for 2 additional 20 year periods (the "New England Regional Agreement"). The regional agreement between the Predecessor Region and REMAX, LLC, dated July 18, 1991 (for the state of Connecticut) was automatically renewed in 2011 for a period through December 2024, may be amended from time to time and is renewable for 2 additional 20-year periods beginning in December 2024 (the "Connecticut Regional Agreement"). The New England Regional Agreement and the Connecticut Regional Agreement (collectively the "Regional Agreements") authorize RE/MAX Regional to sell franchises for RE/MAX offices in Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. REMAX, LLC may terminate the Regional Agreements under certain conditions, if RE/MAX Regional materially violates their terms. If the applicable Regional Agreement is terminated, cancelled, or not renewed, REMAX, LLC or its designee may, at its
option, acquire RE/MAX Regional's rights and assume its obligations under the Franchise Agreement with you.
Source: Item 13 — TRADEMARKS (FDD pages 75–79)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax, LLC has the right to terminate the Regional Agreements with RE/MAX Regional under specific circumstances. These circumstances arise if RE/MAX Regional materially violates the terms outlined in the agreements. This condition applies to the regional agreements acquired from Integra Midwest for Minnesota and Wisconsin, from RE/MAX Indiana for Indiana, and from Integra New England for Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
For a prospective Remax franchisee, this means that the stability of the regional support structure is contingent upon RE/MAX Regional's adherence to its agreements with Remax, LLC. If RE/MAX Regional fails to meet its obligations, Remax, LLC can step in and terminate the agreement. This could potentially lead to a change in regional oversight or even direct management by Remax, LLC.
In the event of termination, cancellation, or non-renewal of the Regional Agreement, Remax, LLC, at its discretion, has the option to acquire RE/MAX Regional's rights and assume its obligations under the Franchise Agreement with the franchisee. This provision aims to ensure business continuity and maintain the franchisee's operational capabilities under the Remax brand, even if the regional entity falters. However, in Indiana, if the Regional Agreement is terminated, RE/MAX franchisees may not have the right to continue to use the RE/MAX Marks.
It is important for potential franchisees to understand the terms of these Regional Agreements and the potential implications of their termination. While Remax aims to protect franchisees by potentially stepping in to assume regional obligations, the termination of a Regional Agreement could still introduce uncertainty and require adjustments for the franchisee. Therefore, due diligence in understanding these agreements is essential for anyone considering a Remax franchise.