factual

Upon termination or expiration of the agreement without renewal, what must a Remax contractor do with the Proprietary Materials?

Remax Franchise · 2025 FDD

Answer from 2025 FDD Document

  • A. Proprietary Materials.Contractor acknowledges that the sales plans, programs, manuals, rosters, forms, contracts, agreements, brochures and other training, listing and sales materials provided hereunder by, and the information gained from, the files or business of Broker or Franchisor/Regional, irrespective of the origin or ultimate source (collectively, the "Proprietary Materials"), are and shall remain the exclusive property of their source, be it Broker, Franchisor or Regional. Upon termination or expiration of this Agreement, without Renewal, Contractor shall promptly return to Broker the original and all copies of the Proprietary Materials in Contractor's possession and shall not, after such termination or expiration use, copy, or reproduce any aspect of the Proprietary Materials for any reason, or permit, suffer or tolerate the use of the Proprietary Materials for Contractor's own advantage or the advantage of others.

Source: Item 22 — Contracts (FDD pages 108–334)

What This Means (2025 FDD)

According to the 2025 Remax Franchise Disclosure Document, upon termination or expiration of the agreement without renewal, a Remax contractor must promptly return to the Broker the original and all copies of the Proprietary Materials in the contractor's possession. The contractor is also prohibited from using, copying, or reproducing any aspect of the Proprietary Materials for any reason after termination or expiration. This includes preventing the use of Proprietary Materials for the contractor's own advantage or the advantage of others.

The Proprietary Materials are defined as sales plans, programs, manuals, rosters, forms, contracts, agreements, brochures, and other training, listing, and sales materials provided by the Broker or Franchisor/Regional. It also includes information gained from the files or business of the Broker or Franchisor/Regional, regardless of the origin or ultimate source. These materials remain the exclusive property of their source, whether it be the Broker, Franchisor, or Regional entity.

This provision ensures that confidential and proprietary information developed and owned by Remax remains protected even after a contractor's affiliation ends. This is a standard practice in franchising to maintain brand consistency and prevent former franchisees or contractors from using the franchisor's resources to compete against the system. The contractor's obligations extend to not only returning the physical or digital copies of the materials but also refraining from using the information contained within them.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.