Does the Remax franchisee's obligation to indemnify Remax Regional and Remax, LLC continue even after the Remax franchise agreement has expired or been terminated, or if the office is abandoned?
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 franchisee's obligation to indemnify Remax Regional and Remax, LLC extends beyond the termination, expiration, or abandonment of the office. The franchisee is responsible for any fines, taxes, costs, expenses, damages, loss, or liability arising from claims related to the business or franchise operation, regardless of whether the claims are brought or filed after the agreement's transfer, termination, expiration, or abandonment of the office. This includes responsibility for the actions or omissions of the franchisee, their owners, employees, or sales associates.
This obligation includes, but is not limited to, claims related to failure to comply with laws or the agreement, claims that Remax Regional or Remax, LLC are joint employers, and allegations of negligence or failure to train or supervise. The franchisee must defend and hold Remax and its related parties harmless from any such liabilities, including actual and consequential damages, attorney's fees, and litigation expenses.
This means that even after a Remax franchise agreement ends, the franchisee could still be held financially responsible for issues that arose during the operation of the franchise. This continuing obligation is a significant consideration for prospective franchisees, as it represents a long-term potential liability that extends beyond the active period of the franchise agreement. Franchisees also waive all rights of subrogation against Remax Regional and Remax, LLC.