Under what conditions can Remax terminate the franchise agreement immediately after delivering a notice of default?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement in the event of the occurrence of any of the specific defaults listed in Subsections 13.B., 13.C., and 13.D. below. You acknowledge and agree that the occurrence of any such material default will constitute just and good cause for termination of your rights under this Agreement, or any other franchise agreement between you or your Owners and REMAX Regional and any of our Related Parties, and that our right to terminate this Agreement based on any such material default is reasonable and that such provisions are lawful requirements of this Agreement.
B. IMMEDIATE TERMINATION.
You will be in material default of an essential condition of this Agreement and we have the right to terminate this Agreement effective upon delivery of notice of termination to you and without providing an opportunity to cure, if:
- (1) you and REMAX Regional, acting reasonably and in good faith, have not agreed on a location for the Office within 90 days of the Agreement Date;
- (2) you fail to open the Office and begin business operations in compliance with the terms and provisions of this Agreement within 180 days of the Agreement Date;
- (3) you or your Owner responsible for the Office fails to attend, prior to the opening of the Office or within 30 days of the Agreement Date, whichever is sooner, the RE/MAX Initial Education Program that REMAX, LLC conducts for new franchisees;
- (4) you voluntarily abandon, surrender, transfer control of or lose the right to occupy the Premises, or fail to actively operate the Office, for a period in excess of 5 consecutive business days, unless your failure to do so is caused by fire, flood, earthquake or other similar cause beyond your reasonable control, as more fully set forth in Subsection 15.AA.;
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 immediately upon delivering a notice of termination without providing an opportunity to cure under several specific conditions. These conditions include if the franchisee states they do not intend to renew the franchise agreement, or 180 days before the agreement expires if the franchisee fails to provide timely notice of their intentions regarding renewal. Remax can also terminate immediately if the franchisee elects to renew but fails to sign the new franchise agreement or pay the renewal fee 90 days before the expiration.
Additionally, Remax can terminate immediately after a notice of default has been delivered to the franchisee, or to any office under any other agreement between Remax Regional and the franchisee, their owners, or any business entity in which they have a controlling interest. Immediate termination is also possible if Remax determines the franchisee intends to abandon or has abandoned their office, or any office under another agreement with Remax Regional. Finally, Remax can terminate immediately upon and at any time after the expiration of the agreement if the franchisee continues to operate the office on a month-to-month holdover basis with Remax's permission.
These immediate termination clauses are significant for prospective Remax franchisees as they outline situations where the franchise can be terminated without any chance to correct the issue. This differs from other termination clauses that may allow a period to cure the default. Franchisees should be aware of these conditions to avoid immediate termination and potential loss of their franchise.