Under the Remax loan agreement, what is the grace period allowed for undischarged money judgments or attachments against the borrower exceeding $10,000 before it constitutes an event of default?

According to Remax's 2025 Franchise Disclosure Document, a franchisee has a 30-day grace period to resolve money judgments, writs, warrants of attachment, or similar processes exceeding $10,000. If such a judgment or attachment is entered or filed against the franchisee or their assets and remains undischarged, unvacated, unbonded, or unstayed for 30 days, it constitutes an event of default under the loan agreement.

This means that if a franchisee faces a legal judgment or attachment exceeding the specified amount, they must take action to resolve the issue within 30 days to avoid being in default of their loan agreement with Remax. This could involve discharging the debt, vacating the judgment, posting a bond, or obtaining a stay to temporarily suspend the judgment's effect.

The 30-day period provides a window for the franchisee to address the financial or legal issue without immediately triggering default consequences. However, it's crucial for franchisees to act promptly and seek legal and financial advice to manage such situations effectively and prevent further complications with Remax.

This type of clause is relatively standard in loan agreements to protect the lender's interests by ensuring the borrower maintains financial stability and addresses significant financial liabilities in a timely manner. Franchisees should be aware of this requirement and have contingency plans in place to handle potential judgments or attachments.