Who is considered a third-party beneficiary of the acknowledgements, agreements, and provisions of Paragraph 12 in the Remax agreement, and what rights does this beneficiary have?

According to Remax's 2025 Franchise Disclosure Document, the franchisor is deemed a third-party beneficiary of the acknowledgements, agreements, and provisions outlined in Paragraph 12 of the franchise agreement. This specifically includes the protection of the Remax System, Proprietary Materials, and the Remax Marks.

As a third-party beneficiary, Remax has the right to directly enforce the provisions of Paragraph 12 through legal action. This means Remax can independently initiate lawsuits or other legal proceedings to ensure compliance with the terms of Paragraph 12, without needing to involve other parties to the agreement.

The obligations of the contractor (franchisee) under Paragraph 12 survive the termination or expiration of the agreement and any renewals. This ensures that even after the franchise relationship ends, the franchisee remains bound by the provisions designed to protect Remax's interests in its system, materials, and marks. This is a standard practice in franchising to protect the brand's intellectual property and operational methods.

Paragraph 12 likely contains provisions related to de-identification, restrictions on using confidential information, and protection of the Remax brand after the franchise agreement concludes. The franchisor's ability to directly enforce these provisions as a third-party beneficiary is a significant protection for the Remax system.