Under what conditions can Remax terminate the franchise agreement with only 10 days' written notice?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
uch failures to comply happen at the same time or at different times within the 12 consecutive month period, and regardless of whether such failures to comply are corrected after notice is given to you; or
- (16) you or any of your Owners fail to comply with any requirement, obligation (including, if an agreement has expired or terminated, a surviving obligation), term or condition of any other franchise or other agreement between you or your Owners and us or any of our Related Parties, and do not cure such default in accordance with the terms of such other agreement.
C. 10 DAYS NOTICE.
We have the right to terminate this Agreement effective 10 days after providing written notice to you if:
(1) you or your Owners do not pay when due any monies owed to us or REMAX, LLC;
- (2) you or your Owners default under the terms of any promissory note executed in favor of us or REMAX, LLC;
- (3) you or your Owners fail to report to us all Sales Associates affiliated with the Office or any Team Office for any month or fail to comply with any of the other records and reporting requirements set forth in Section 10 of this Agreement; or
- (4) there is a failure to appoint a manager or dispose of an ownership interest upon the death, incompetency or permanent disability of you or an Owner as provided in Subsection 12.E.
This notice will advise you, and you hereby understand and agree, that if the default is not cured within 10 days, this Agreement automatically terminates at the end of such 10 days without further notice from us.
D. 30 DAYS NOTICE.
We have the right to terminate this Agreement effective 30 days after providing written notice to you if:
- (1) you or your Owners fail to meet and maintain your Minimum Agent Count as provided in Section 7 of this Agreement;
- (2) you or your Owners fail to obtain the insurance coverage identified in Subsection 8.D. of this Agreement; or
- (3) you or your Owners fail to comply with any other provision of this Agreement or any standard, procedure, policy, or guideline prescribed by us or REMAX, LLC.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax has the right to terminate the franchise agreement with only 10 days' written notice under specific circumstances. These circumstances include if the franchisee or their Owners fail to pay monies owed to Remax or REMAX, LLC when due. Additionally, Remax can terminate with 10 days' notice if the franchisee or their Owners default under the terms of any promissory note executed in favor of Remax or REMAX, LLC.
Furthermore, Remax may terminate the agreement with 10 days' notice if the franchisee or their Owners fail to report all Sales Associates affiliated with the Office or any Team Office for any month. This also applies if they fail to comply with any of the other records and reporting requirements outlined in Section 10 of the agreement. Another condition that allows Remax to terminate with 10 days' notice is a failure to appoint a manager or dispose of an ownership interest upon the death, incompetency, or permanent disability of the franchisee or an Owner, as detailed in Subsection 12.E.
It is important to note that the written notice provided by Remax will inform the franchisee that the agreement will automatically terminate at the end of the 10-day period if the default is not cured within that timeframe. This means the franchisee must take immediate action to correct the issue upon receiving such notice to avoid termination of the franchise agreement. Also, if a franchisee continues to operate the Office as a RE/MAX office after the end of the Term without proper renewal, REMAX Regional reserves the right to terminate at any time, and without cause, your right to continue to operate the Office during this holdover period, upon 10 days prior written notice to you.