What are the franchisee's obligations regarding complying with all applicable laws and regulations as outlined in Item 9, and how does Remax assist with this through the legal and compliance support described in Item 11?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
C. COMPLIANCE WITH LAWS AND GOOD BUSINESS PRACTICES.
(1) You are Responsible for Complying with all Applicable Laws.
You acknowledge that it is your sole responsibility to secure and maintain in force all required licenses, permits and certificates relating to the operation of the Office and to operate the Office in full compliance with all applicable federal, state, and local laws, ordinances and regulations, including, without limitation, those relating to: real estate service businesses, brokers and salespersons; occupational hazards; health, workers' compensation and unemployment insurance; the Americans with Disabilities Act; the Real Estate Settlement Procedures Act (commonly known as RESPA); and Fair Housing Laws. You acknowledge
that it is your sole responsibility to comply with all federal and state laws that regulate privacy and data security (including but not limited to laws regulating the processing, protection, and security of client information in any way including but not limited to laws pertaining to the use, storage, transmission, and disposal of data regardless of media type); the CAN-SPAM Act; the Telephone Consumer Protection Act; the Telemarketing Sales Rule, as well as other federal and state anti-solicitation laws regulating phone calls, spamming, faxing, and/or privacy (collectively "Privacy Laws"). You agree that you will: (i) comply with all Privacy Laws that relate to the privacy and security of client information; (ii) maintain reasonable physical, technical and administrative safeguards for client information that is in your possession or control in order to protect the same from unauthorized processing, destruction, modification, or use that would violate the Agreement or any Privacy Law; refrain from any action or inaction that could cause us to breach any Privacy Laws; (iii) do and execute, or arrange to be done and executed, each act, document and thing we deem necessary in our business judgment to keep us in compliance with Privacy Laws; and (iv) immediately report to usthe breach of any requirementsin the Agreement regarding client information or any Privacy Law, or the theft or loss (or any apparent or alleged theft of loss) of client information. (See also Subsection 3.C. (1) b.)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, franchisees are solely responsible for complying with all applicable laws and regulations pertaining to their Remax office. This includes securing and maintaining all required licenses, permits, and certificates. Franchisees must operate their office in full compliance with federal, state, and local laws, ordinances, and regulations related to real estate service businesses, brokers and salespersons, occupational hazards, health, workers' compensation, unemployment insurance, the Americans with Disabilities Act, RESPA, and Fair Housing Laws.
Remax franchisees are also responsible for adhering to all federal and state laws that regulate privacy and data security. This includes laws regulating the processing, protection, and security of client information, the CAN-SPAM Act, the Telephone Consumer Protection Act, and the Telemarketing Sales Rule. Franchisees must maintain reasonable safeguards for client information, refrain from actions that could cause Remax to breach any Privacy Laws, and report any breaches or losses of client information immediately.
Item 9 of the Remax FDD outlines the franchisee's obligations, referencing specific sections within the franchise agreement that detail compliance with standards, policies, operating manuals, and laws. Failure to comply with these laws within 10 days of notification from Remax or any applicable agency can result in termination of the franchise agreement. Additionally, franchisees are required to indemnify Remax and its related parties from any liabilities, costs, or damages arising from their failure to comply with applicable laws or the franchise agreement.