Under what conditions can Remax Regional terminate a franchisee's eligibility for Franchisee Incentives?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
nal may institute certain temporary financial incentive programs or certain temporary fee structure pilot programs (together, "Program Incentives"), which may take the form of credits, waivers, deferrals, reductions, or restructuring of certain monthly fees due to REMAX Regional under this Agreement to facilitate or encourage franchisees' Sales Associate recruiting or franchisees' RE/MAX brand promotion activities. REMAX Regional reserves the right to provide such Program Incentives and to institute and terminate them at any time. Franchisee's compliance at all times with all of the material provisions of this Agreement is required for Franchisee to be eligible for any and all Expansion Incentives, Program Incentives, or any other financial accommodations (collectively, "Franchisee Incentives"). If you have received any Franchisee Incentives from REMAX Regional, and you default on any of your material obligations to REMAX Regional under this Agreement, REMAX Regional reserves the right to terminate your eligibility for any and all such Franchisee Incentives. If you fail to cure any such default within the cure period provided in this Agreement, or if such default cannot be cured, or in the event of an Early Termination of this Agreement for any reason other than pursuant to mutual consent, prior to the conclusion of the Term or any applicable renewal thereof, or upon Abandonment of the Office, REMAX Regional reserves the right to require you, on demand, to repay any and all Franchisee Incentives that you received from REMAX Regional prior to such default, Early Termination, or Abandonment.
7. MINIMUM AGENT COUNT.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional reserves the right to terminate a franchisee's eligibility for Franchisee Incentives under specific circumstances related to defaults on the franchise agreement. Franchisee Incentives include Expansion Incentives, Program Incentives, or any other financial accommodations.
Specifically, if a Remax franchisee receives any Franchisee Incentives and subsequently defaults on any material obligations to Remax Regional under the franchise agreement, Remax Regional can terminate the franchisee's eligibility for any and all such Franchisee Incentives. This applies even if the franchisee later cures the default.
Furthermore, if the franchisee fails to cure the default within the provided cure period, if the default cannot be cured, or in the event of an early termination of the agreement for reasons other than mutual consent, or upon abandonment of the office, Remax Regional can demand repayment of all Franchisee Incentives received prior to the default, early termination, or abandonment. This provision underscores the importance of adhering to the franchise agreement and maintaining good standing with Remax Regional to retain eligibility for and avoid repayment of any incentives.