What does a Remax franchisee agree to indemnify and hold harmless?
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, as a franchisee, you are responsible for covering any expenses resulting from claims related to your business. This includes responsibility for the actions or failures of you, your owners, employees, or sales associates, as well as the operation of your Remax office.
Specifically, you must indemnify Remax, LLC, its related parties, officers, directors, employees, and shareholders from any fines, taxes, costs, expenses, damages, losses, or liabilities they incur due to claims. These claims can arise from your alleged failure to follow laws or the franchise agreement, claims that Remax is a joint employer with you, or allegations of negligence or failure to train or supervise you or your staff. This obligation extends even after the franchise agreement ends or if the office is abandoned.
The franchisee's responsibilities include covering actual and consequential damages, attorney's fees, accountant fees, expert witness fees, investigation costs, court costs, and travel expenses. Additionally, the franchisee waives all rights of subrogation against Remax and its related parties. Remax retains the right to defend any claims and bill the franchisee for all associated costs and attorney's fees if the claim originates from the actions or omissions of the franchisee, their owners, employees, or sales associates. This means a Remax franchisee carries significant financial responsibility for legal and operational issues arising from their business.
This type of indemnification clause is standard in franchise agreements. It protects the franchisor from liabilities caused by the franchisee's business operations. Prospective Remax franchisees should carefully consider the potential financial impact of this clause and ensure they have adequate insurance coverage and risk management strategies in place.