In the event of a data or security incident or breach related to a Remax office, what are the immediate notification requirements and obligations of the franchisee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
In the interest of protecting the RE/MAX brand, the RE/MAX Marks and the RE/MAX System, you must notify us and/or REMAX, LLC immediately of any data or security incident or breach related to your Office, including any unauthorized access to your Computer System, and specify the extent to which personal information may have been compromised. You must also, at your expense, retain a qualified and independent data security expert ("remediation expert") to assess the nature and scope of the breach. If we request, you agree to provide us with a written report detailing the remediation expert's findings. You agree to fully cooperate with us and REMAX, LLC with respect to any media statements and other items related to managing any such incident, including fact finding or mitigation/defense actions we deem advisable (see also Crisis Communications, Subsection 8.P.). In addition, you agree to keep us informed about the status of the incident or breach, including identifying all steps you take to remedy or resolve the matter.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees are responsible for protecting their computer systems and complying with privacy and data security laws. If a data or security incident occurs, the franchisee must immediately notify Remax, LLC, specifying the extent to which personal information may have been compromised.
Following notification, the franchisee must, at their own expense, hire a qualified and independent data security expert, referred to as a "remediation expert," to assess the nature and scope of the breach. Remax may request a written report detailing the remediation expert's findings.
The franchisee is obligated to fully cooperate with Remax, LLC, regarding media statements and other actions related to managing the incident, including fact-finding or mitigation efforts deemed advisable by Remax. Furthermore, the franchisee must keep Remax informed about the status of the incident or breach, including all steps taken to remedy or resolve the matter. This ensures that Remax can take appropriate steps to protect its brand and system while the franchisee addresses the immediate security concerns.