Under what conditions can either party terminate the agreement with cause related to the Remax software license?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2 Termination with Cause. Either Party may terminate this Agreement in the event the other party breaches any representation, warranty, covenant, or obligation (if such breach is capable of being cured), and such breach is not cured within thirty (30) days of written notice thereof from the non-breaching party.
- 10.3 Effect of Expiration or Termination. Upon expiration or earlier termination of this Agreement, the license granted hereunder will also terminate, and, without limiting Customer's obligations under Section 4, Customer shall cease using the Software, delete or destroy all Documentation and certify in writing to the Licensor that the Documentation has been deleted or destroyed. No expiration or termination will affect Licensor's entitlement to all Fees that may have become due before such expiration or termination, or entitle Customer to any refund.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, either party can terminate the software license agreement with cause if the other party breaches any representation, warranty, covenant, or obligation. However, this termination is only applicable if the breach is capable of being cured.
To terminate the agreement, the non-breaching party must provide written notice of the breach to the breaching party. The breaching party then has thirty days from the date of the written notice to cure the breach. If the breach is not cured within this 30-day period, the non-breaching party has the right to terminate the agreement.
Upon termination of the agreement, the franchisee must cease using the software, and delete or destroy all related documentation, providing written certification of this destruction to the licensor. It's important to note that termination does not affect the licensor's right to any fees that were due before the termination, nor does it entitle the franchisee to a refund.