According to the provided table, what information must Remax franchisees provide regarding shareholders or stockholders?
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)
Based on the 2025 Remax Franchise Disclosure Document, if a franchisee operates as a Business Entity, Remax relies on the qualifications, business skills, financial capability, and personal character of the individual owners. These owners could be shareholders, partners, members, or other individuals with a legal or equitable ownership interest who have the right to control the Business Entity.
For Remax, if the Business Entity is owned by one or more other Business Entities (Parent Entity), references to Owners also include the individuals who own or control any Parent Entity. During franchise renewal, Remax requires the franchisee and their Owners to authorize Remax Regional or Remax, LLC to obtain a consumer report and conduct credit and background checks.
Furthermore, if a Remax franchisee is in default of any agreement provision, Remax reserves the right to request financial reports and statements not only from the franchisee but also from the Owners personally and any other businesses they own. This comprehensive approach ensures Remax maintains standards and protects its brand by scrutinizing the financial health and background of those involved in the franchise operation.