Under what conditions can a Remax office be closed following the death or disability of the franchisee or principal owner?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| p. | Death or disability of franchisee | Subsection 12.E. of Franchise Agreement | Upon your or a principal owner's death or permanent disability, your or such owner's interest must be sold or transferred to an approved person within 6 months, or with 60 days prior written notice, the Office may be closed if any outstanding fees have been paid in full. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 81–88)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee or a principal owner of a Remax franchise dies or becomes permanently disabled, their interest in the franchise must be sold or transferred to an approved person within six months. This requirement ensures the continued operation of the Remax office under new, qualified leadership.
However, if the sale or transfer does not occur within that six-month period, Remax provides an alternative option. The franchise agreement allows for the office to be closed, provided that Remax receives 60 days' prior written notice of the intended closure. This notice period gives Remax time to prepare for the transition and potentially find a new franchisee for the location.
Furthermore, for the office closure to be permissible, all outstanding fees owed to Remax must be paid in full. This condition protects Remax's financial interests and ensures that the franchisee's obligations are met before the office ceases operations. Therefore, the death or disability of a franchisee or principal owner does not automatically lead to closure; it triggers a period for transfer or sale, with closure being an option only if specific conditions are met.