When Remax conducts an audit of a franchisee's office, is the franchisee required to ensure that everyone affiliated with the office cooperates with Remax or its representatives?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to cooperate with us and REMAX, LLC in the defense of, and not to settle or compromise, without our and/or REMAX, LLC's prior written consent, any Claims to which we and/or REMAX, LLC are a party or which may affect our interests or the interests of REMAX, LLC. Your indemnification obligations described above will continue in full force and effect after, and notwithstanding, the transfer, expiration or termination of this Agreement, or Abandonment of the Office.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
Based on the 2025 Remax Franchise Disclosure Document, while the document outlines various obligations of the franchisee and their affiliated personnel, it does not explicitly state that a franchisee is required to ensure that everyone affiliated with their office cooperates with Remax or its representatives during an audit. However, the FDD does state that the franchisee must agree to cooperate with Remax, LLC in the defense of any claims.
Item 22 details several requirements regarding the conduct of business, ethical advertising standards, and the handling of confidential information. Franchisees must ensure their sales associates and affiliated personnel adhere to honesty, integrity, and ethical conduct standards. They must also protect Remax's confidential information.
Prospective franchisees should inquire with Remax about the specific expectations and requirements during audits to fully understand their obligations and ensure compliance. Understanding the level of cooperation expected from all affiliated parties will help avoid potential conflicts or misunderstandings during the auditing process.