For a Remax franchise operated as a Limited Liability Company, what information must be provided regarding the members of the LLC?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
fore you sign it. In this Agreement, we refer to RE/MAX Integrated Regions, LLC, as "we," "us," "RE/MAX Regional," or "REMAX Regional" and to RE/MAX, LLC as "RE/MAX, LLC" or "REMAX, LLC." We refer to each franchisee who signs this Agreement as "you," "Franchise Owner" or "Franchisee." We refer to as related parties ("Related Parties") any entity that directly or indirectly is controlled by or under common control with us or REMAX, LLC. If you are presently a corporation, partnership, limited liability company, or other business entity (collectively "Business Entity"), or if you, as an individual or individuals, make a subsequent assignment or transfer of this Agreement to a Business Entity under Section 12 of this Agreement, you will notice certain provisions that are applicable to the individual owner(s) of the Business Entity. Depending on the type of Business Entity, these individual owners would be the shareholder(s), partner(s), member(s), or other individuals who have a legal or equitable ownership interest in, or who otherwise have the right to control, the Business Entity. We have relied on the qualifications, business skill, financial capability and personal character of these individual owners in entering into this Agreement with, or in permitting such assignment or transfer to, the Business Entity.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, if a franchisee is a Limited Liability Company (LLC), Remax requires specific ownership and management information. Remax uses this information to assess the qualifications, business skills, financial capability, and personal character of the individual owners (members) of the LLC. This is because Remax relies on these attributes when entering into a franchise agreement with a business entity.
The FDD specifies that if the franchise owner is a business entity other than a sole proprietorship, partnership, corporation, or LLC, the franchise owner must provide Remax with information similar to that requested in Exhibits A-1 through A-4. These exhibits cover sole proprietorships, partnerships, corporations, and LLCs, respectively. This ensures that Remax receives consistent and relevant information regardless of the specific type of business entity operating the franchise.
Exhibit A-4, specifically for LLCs, would need to be completed to provide Remax with the necessary details about the LLC's ownership and management structure. While the exact details of what Exhibit A-4 entails are not provided in the excerpt, it is clear that Remax requires this information to evaluate the suitability of the LLC's members as franchise owners. Prospective franchisees should request a copy of Exhibit A-4 from Remax to understand the specific information required.