Where can I find the definition of 'Losses' within the Remax franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall be solely and exclusively responsible for any fines, taxes, costs, expenses, damages, loss or liability, of any kind or nature, arising out of any suits, actions, proceedings, claims or counterclaims, regardless of whether you were named or served in the matter relating to or arising out of your business or the operation of the Franchise (collectively "Claims"), including but not limited to, any acts or omissions of you, your Owners, employees or Sales Associates, or the operation of the Office, and including but not limited to (i) your alleged failure to comply with applicable laws and/or this Agreement, including but not limited to your de-identification obligations pursuant to Subsection 14.B; (ii) any Claim that REMAX Regional, REMAX, LLC or any of the Related Parties are a joint employer with you for any reason; and (iii) allegations that REMAX Regional, REMAX, LLC or its Related Parties were negligent or failed to train or supervise you, your Owners, or your Sales Associates, even if any Claims are brought or filed after transfer, termination or expiration of this Agreement or Abandonment of the Office. You agree to indemnify, defend and hold us and REMAX, LLC, and each of our and their Related Parties and our and their respective officers, directors, employees and shareholders harmless from and against, and to reimburse us and them for, all such fines, taxes, costs, expenses, damages, loss or liability for which we or they are held liable or which we or they incur in connection with any Claims, including, without limitation, actual and consequential damages, attorneys', accountants', and expert witness fees, cost of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses. You agree to waive all rights of subrogation against REMAX Regional, REMAX, LLC, each of our and their Related Parties, and our and their respective officers, directors, employees and shareholders. REMAX Regional and REMAX, LLC have the right to defend any Claims and, in connection therewith, to retain legal counsel of our or their choice and bill you for all costs and attorneys' fees incurred for any Claim originating from the acts/omissions of you, your Owners, employees, or Sales Associates, which costs and fees you
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, the definition of 'Losses' can be found within the indemnification clause of the franchise agreement. Specifically, it is included as part of the franchisee's responsibility regarding fines, taxes, costs, expenses, damages, or liabilities arising from claims related to the franchisee's business or the operation of the franchise.
This section of the Remax franchise agreement outlines that the franchisee is solely responsible for any financial repercussions resulting from legal actions, claims, or counterclaims associated with their business. This includes not only direct actions but also any acts or omissions by the franchisee, their owners, employees, or sales associates. The definition extends to encompass a wide array of potential financial burdens, including actual and consequential damages, legal fees, investigation costs, and other litigation-related expenses.
For a prospective Remax franchisee, this means they are assuming significant financial responsibility for any legal or financial issues that arise from their business operations. It is crucial to understand the scope of this indemnification and to ensure adequate insurance coverage and risk management practices are in place. The franchisee also waives rights of subrogation against Remax Regional and Remax, LLC, meaning they cannot seek to recover losses from these entities, even if those entities contributed to the loss. Remax Regional and Remax, LLC, however, retain the right to defend any claims and bill the franchisee for all associated costs and attorney's fees if the claim originated from the acts or omissions of the franchisee, their owners, employees, or sales associates.