What conditions must Remax's Licensor meet when settling a claim against the customer?

According to Remax's 2025 Franchise Disclosure Document, a franchisee is prohibited from settling or compromising any claims to which Remax or Remax, LLC is a party without first obtaining written consent from both Remax and Remax, LLC. This requirement extends to claims that may affect the interests of Remax or Remax, LLC.

This stipulation ensures that Remax maintains control over legal matters that could impact the brand's reputation, financial stability, or legal standing. By requiring prior written consent, Remax can assess the potential ramifications of any settlement and ensure that its interests are adequately protected. This also prevents franchisees from making agreements that could set unfavorable precedents or create liabilities for the Remax system.

For a prospective Remax franchisee, this means that they must involve Remax and Remax, LLC in any legal claims involving customers. They cannot independently resolve such claims without explicit approval, even if they believe a quick settlement is in their best interest. Failure to comply with this requirement could result in breach of contract and potential legal repercussions from Remax.

This requirement is a fairly standard practice in franchising, as franchisors typically want to maintain control over legal matters that could affect the entire franchise system. Franchisees should be aware of this restriction and factor it into their business operations and decision-making processes.