Does Remax, LLC guarantee RE/MAX Integrated Regions, LLC's obligations under the Franchise Agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
REMAX, LLC guarantees RE/MAX Integrated Regions, LLC's obligations under the Franchise Agreement. Attached to this disclosure document as Exhibit C are the consolidated balance sheets of REMAX, LLC and subsidiaries as of December 31, 2024 and 2023, and the related consolidated statements of income (loss), comprehensive income (loss), member's equity, and cash flows for each of the years in the three-year period ended December 31, 2024. Also attached to this disclosure document as Exhibit C is RE/MAX, LLC's Guarantee of Performance.
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 21 — Financial Statements (FDD page 108)
What This Means (2025 FDD)
According to the 2025 Remax Franchise Disclosure Document, Remax, LLC does guarantee RE/MAX Integrated Regions, LLC's obligations under the Franchise Agreement. This guarantee is further detailed in Exhibit C of the FDD, which includes the consolidated balance sheets of REMAX, LLC and its subsidiaries as of December 31, 2024, and 2023, along with related financial statements. Exhibit C also contains RE/MAX, LLC's Guarantee of Performance.
Specifically, the Guarantee of Performance states that RE/MAX, LLC absolutely and unconditionally guarantees the performance by RE/MAX Integrated Regions, LLC of all obligations 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 its 2025 Franchise Disclosure Document.
This guarantee remains in effect until all obligations of the Subfranchisor (RE/MAX Integrated Regions, LLC) under such franchise registrations and Franchise Agreements are satisfied, or until the liability of the Subfranchisor to its franchisees under the Franchise Agreements has been completely discharged. Remax, LLC is not discharged from liability if a claim by a franchisee against RE/MAX Integrated Regions, LLC remains outstanding. This guarantee is binding on Remax, LLC and its successors and assigns.