Under what conditions can Remax terminate the franchise agreement immediately without an opportunity to cure?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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.;
- (5) you or any of your Owners sell, lease, convey, give away, subfranchise, sublicense, pledge, mortgage, assign, transfer, encumber or otherwise dispose of any direct or indirect interest in this Agreement, the Franchise, the assets of the Franchise or Office or any interest in violation of the provisions of Section 12 of this Agreement;
- (6) a voluntary or involuntary petition in bankruptcy is filed by or against you or any of your Owners unless such petition is set aside, withdrawn or ceases to be in effect within 20 days of the date of any such filing;
- (7) you or one of your Owners or the Business Entity is declared or judicially determined to be insolvent or all or a substantial part of your or your Owner's assets are assigned to or for the benefit of any creditor, or you admit your inability to pay your debts as they become due, or a liquidator, trustee in bankruptcy, custodian, receiver, receiver and manager, sheriff, or any other officer with similar powers is appointed temporarily or permanently, either privately or by a court of competent authority for or over you, one of your Owners or over the Business Entity;
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional can terminate the franchise agreement immediately, without giving the franchisee an opportunity to cure the default, under several specific conditions. These conditions relate to critical aspects of the franchise operation and adherence to the franchise agreement terms.
Immediate termination can occur if the franchisee and Remax Regional cannot agree on an office location within 90 days of the agreement date. It can also happen if the franchisee fails to open the office and begin operations within 180 days of the agreement date, or if the franchisee or their owner fails to attend the required initial education program within 30 days of the agreement date or before opening the office, whichever comes first. Abandoning the premises for more than five consecutive business days, unless due to events beyond the franchisee's control like natural disasters, also constitutes grounds for immediate termination.
Furthermore, Remax can immediately terminate the agreement if the franchisee sells, leases, or transfers any interest in the franchise without proper authorization, or if bankruptcy proceedings are initiated against the franchisee or their owners and not resolved within 20 days. Insolvency, assignment of assets for the benefit of creditors, or the appointment of a liquidator or receiver also trigger immediate termination rights for Remax. These stipulations are designed to protect the Remax brand and ensure franchisees meet operational and financial obligations.