What aspects of the Remax franchise agreement, besides Section 4, grant REMAX, LLC third-party beneficiary status?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
RE/MAX, LLC is a third party beneficiary of this Agreement and may enforce the rights and benefits of Customer as if they were party to this Agreement.
Except as provided in the preceding sentence, no other person or entity shall be deemed a third party beneficiary to this Agreement.
For the avoidance of doubt, Customer is not and shall not be deemed a third-party beneficiary of the MTSA.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, REMAX, LLC is designated as a third-party beneficiary in specific sections of the franchise agreement. Besides Section 4, REMAX, LLC benefits from this status under Section 11.1 of the agreement. This means REMAX, LLC can enforce the rights and benefits outlined in the agreement as if it were a direct party to the agreement.
This third-party beneficiary status grants Remax certain rights and protections, allowing it to directly enforce specific provisions of the franchise agreement against the franchisee. This is in addition to the rights Remax Integrated Regions, LLC has as the direct franchisor.
For a prospective Remax franchisee, this clause means that REMAX, LLC has the legal standing to take action against them for breaches of the franchise agreement, even though REMAX, LLC is not the direct franchisor. Franchisees should carefully review the entire franchise agreement to understand all of their obligations and the rights that REMAX, LLC has to enforce those obligations. Understanding these aspects of the agreement is crucial for maintaining a compliant and successful franchise operation within the Remax system.