According to the Remax Franchise Agreement, what parties are involved in the agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Franchise Agreement ("Agreement") is effective as of | , 20 ("Agreement Date"). The |
|---|---|
| parties to this Agreement are you, | as Franchise Owner, us, RE/MAX |
| Integrated Regions, LLC, a Delaware limited liability company and, if you are a partnership, corporation, limited | |
| liability company or other business entity, your Owners (defined below). This Agreement is for a RE/MAX® real | |
| estate services office to be located at: | [subject to |
| approval by RE/MAX Integrated Regions, LLC] ("Premises") and operated under the trade name | |
| [subject to approval by RE/MAX Integrated Regions, LLC]. |
1. INTRODUCTION.
This Agreement has been written in an informal style in order to make it more easily readable and to be sure that you become thoroughly familiar with all of the important rights and obligations this Agreement covers before you sign it. In this Agreement, we refer to RE/MAX Integrated Regions, LLC, as "we," "us," "RE/MAX Regional," or "REMAX Regional" and to RE/MAX, LLC as "RE/MAX, LLC" or "REMAX, LLC." We refer to each franchisee who signs this Agreement as "you," "Franchise Owner" or "Franchisee." We refer to as related parties ("Related Parties") any entity that directly or indirectly is controlled by or under common control with us or REMAX, LLC. If you are presently a corporation, partnership, limited liability company, or other business entity (collectively "Business Entity"), or if you, as an individual or individuals, make a subsequent assignment or transfer of this Agreement to a Business Entity under Section 12 of this Agreement, you will notice certain provisions that are applicable to the individual owner(s) of the Business Entity. Depending on the type of Business Entity, these individual owners would be the shareholder(s), partner(s), member(s), or other individuals who have a legal or equitable ownership interest in, or who otherwise have the right to control, the Business Entity. We have relied on the qualifications, business skill, financial capability and personal character of these individual owners in entering into this Agreement with, or in permitting such assignment or transfer to, the Business Entity. We refer to these individual owners as "Owners." If you are a Business Entity that is owned, in whole or in part, by one or more other Business Entities (each a "Parent Entity"), reference to Owners in this Agreement also means the individual or individuals who own or who otherwise have a legal right to control, any Parent Entity.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, the agreement is between RE/MAX Integrated Regions, LLC, referred to as "we," "us," "RE/MAX Regional," or "REMAX Regional," and the franchisee, referred to as "you," "Franchise Owner," or "Franchisee." RE/MAX, LLC is also identified as a relevant party in the agreement. The agreement also applies to related parties, defined as any entity directly or indirectly controlled by or under common control with Remax Regional or RE/MAX, LLC. If the franchisee is a business entity, the individual owners of that entity are also considered parties to the agreement. These owners could be shareholders, partners, members, or other individuals with a legal or equitable ownership interest or the right to control the business entity. If the business entity is owned by another business entity (a Parent Entity), the individuals who own or control the Parent Entity are also included.
This definition of parties is important because it clarifies who is bound by the terms of the franchise agreement. It extends beyond just the franchisee and Remax Regional to include related entities and individual owners, ensuring that all relevant parties are accountable for fulfilling the obligations outlined in the agreement. This comprehensive approach is typical in franchise agreements to prevent individuals from circumventing the agreement by operating through business entities.
Furthermore, the document states that if the Franchise Owner consists of more than one person or Business Entity, or a combination thereof (i) the obligation and liabilities to REMAX Regional of each such person or Business Entity are joint and several; (ii) a right under the Agreement exercised by any one of them is deemed to be exercised jointly; and (iii) a representation, warranty, or undertaking made by one person or Business Entity is deemed to be a representation made by each of them. Also, you or, if you are a Business Entity, each of your Owners, must sign the Guaranty and Assumption of Obligations, attached to this Agreement.