Who is the Guarantor guaranteeing the performance of in the Remax franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, RE/MAX, LLC, a Delaware limited liability company (the "Guarantor"), located at 5075 S. Syracuse Street, Denver, Colorado, 80237, absolutely and unconditionally guarantees the performance by RE/MAX Integrated Regions, LLC, located at 5075 S. Syracuse Street, Denver, Colorado, 80237, (the "Subfranchisor"), of all of the obligations of the Subfranchisor under its franchise registrations in Indiana, Minnesota, Rhode Island, and Wisconsin, and all of its obligations under the Franchise Agreements entered into after April 2, 2025 pursuant to its 2025 Franchise Disclosure Document (the "Franchise Agreements"). This guarantee continues until all such obligations of the Subfranchisor under such franchise registrations and its obligations under such Franchise Agreements are satisfied, or until the liability of the Subfranchisor to its franchisees under the Franchise Agreements has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Subfranchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Subfranchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, RE/MAX, LLC, a Delaware limited liability company, serves as the Guarantor for RE/MAX Integrated Regions, LLC (the "Subfranchisor"). RE/MAX, LLC is located at 5075 S. Syracuse Street, Denver, Colorado, 80237. As the Guarantor, RE/MAX, LLC absolutely and unconditionally guarantees the performance of all obligations of the Subfranchisor under its franchise registrations in Indiana, Minnesota, Rhode Island, and Wisconsin. This also extends to all obligations under Franchise Agreements entered into after April 2, 2025, pursuant to the 2025 Franchise Disclosure Document.
This guarantee remains in effect until all obligations of the Subfranchisor under such franchise registrations and its obligations under such Franchise Agreements are satisfied. It also continues until the liability of the Subfranchisor to its franchisees under the Franchise Agreements has been completely discharged, whichever occurs first. It is important to note that RE/MAX, LLC, as the Guarantor, is not discharged from liability if a claim by a franchisee against the Subfranchisor remains outstanding.
For a prospective franchisee, this guarantee provides an added layer of security. It ensures that RE/MAX, LLC stands behind the obligations of RE/MAX Integrated Regions, LLC, offering some protection in case the Subfranchisor fails to meet its commitments. The waiver of notice of acceptance simplifies the process, while the non-waiver of receipt of default notice ensures that the Guarantor is informed of any issues. This guarantee is binding on RE/MAX, LLC and its successors and assigns, further solidifying its commitment.