Under what conditions can RE/MAX Regional terminate the Franchise Agreement if a location is not agreed upon?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
If you and RE/MAX Regional, acting reasonably and in good faith, cannot agree on a location for the Office within 90 days after the Franchise Agreement is signed, unless otherwise agreed, it will be deemed to be a failure of a material condition precedent to the Franchise Agreement entitling RE/MAX Regional to terminate the Franchise Agreement.
Failure to open the Office within 180 days after the Franchise Agreement is signed will also be deemed to be a failure of a material condition precedent to the Franchise Agreement entitling RE/MAX Regional to terminate the Franchise Agreement.
Your initial franchise fee is not refundable if you fail to locate an acceptable site for your Office or you do not open your Office within 180 days after the Franchise Agreement is signed.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 59–71)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, RE/MAX Regional can terminate the Franchise Agreement if a mutually agreeable location for the office cannot be found. Specifically, if the franchisee and RE/MAX Regional, acting reasonably and in good faith, fail to agree on a location within 90 days after the Franchise Agreement is signed, RE/MAX Regional is entitled to terminate the agreement. This 90-day period can be extended if both parties agree.
This condition is considered a 'material condition precedent' to the Franchise Agreement, meaning it is a fundamental requirement that must be satisfied before the agreement can proceed. If this condition is not met, RE/MAX Regional has the right to terminate the agreement.
It is important to note that if the Franchise Agreement is terminated under these conditions, the initial franchise fee is not refundable. Additionally, failure to open the office within 180 days after signing the Franchise Agreement will also result in termination and forfeiture of the initial franchise fee. This highlights the importance of securing a suitable location and commencing operations within the specified timeframes to avoid losing the initial investment.