Is the Remax agreement binding on the successors and assigns of Remax?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement is binding on and will inure to the benefit of our successors and assigns and will be binding on and inure to the benefit of your successors and assigns, and if you are an individual, on and to your heirs, executors and administrators.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the franchise agreement is binding on and will benefit the successors and assigns of Remax. This means that if Remax transfers the agreement to another party, that new party will be bound by the terms of the agreement, and the franchisee will need to look to them for performance of the obligations outlined in the agreement.
This clause ensures that the agreement remains in effect even if the ownership or control of Remax changes. It provides stability for both Remax and the franchisee, as the terms of the agreement will continue to be enforced regardless of any changes in Remax's structure or ownership. The franchisee consents to any such assignment or transfer and agrees to execute any documents necessary to effect the transfer or assignment.
However, the agreement also states that any addendum, amendment, or other modification to the agreement that grants the franchisee any type or kind of territorial rights is not transferable or assignable and will not become a part of the franchise relationship between Remax and the transferee(s) or assignee(s). This means that if the franchisee has any special territorial rights, those rights will not be transferred to the new party if the agreement is assigned.