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Boston area RE/MAX franchisee splits from brand after contract dispute

by Michael M. Mazek

RE/MAX Leading Edge, the largest RE/MAX franchisee in the Boston area and New England, has split from its parent company RE/MAX Integra. The franchise will now operate independently as Leading Edge Realty. The decision is the latest development in an ongoing contract dispute between the two firms dating back almost two years.

“RE/MAX has franchisee contracts that go through an annual renewal process, and every time they renew, they become more one-sided and less beneficial to the franchisee,”  Leading Edge co-owner Paul Mydelski told the Boston Business Journal. “Most people sign them because they have no choice. We reached a point where we just couldn’t agree to their terms, and we attempted to renegotiate.”

As Leading Edge and Integra worked to renegotiate its agreements, little progress was made. The situation reached a head in June, according to Mydelski, when Integra ordered Leading Edge to remove RE/MAX branding and signage from three of its nine offices. Leading Edge refused and sued in Middlesex County court for an injunction against the order. That request was denied because the court determined Integra was contractually permitted to exercise its order.

Fiona Petrie, executive vice president and managing director of U.S. operations for RE/MAX Integra, said in a statement that a trial on the larger contract dispute between the two firms has been set for December.

“RE/MAX Leading Edge’s decision to leave RE/MAX INTEGRA is unfortunate,” the statement from Petrie said. “The factual background is that RE/MAX Leading Edge Broker/Owners have for months operated some of their nine offices without our standard franchise agreements, as a result of their refusal to renew certain expired agreements and to enter into certain promised agreements nearly two years ago.”

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