What obligations of the Subfranchisor does RE/MAX, LLC guarantee under 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.
The Guarantor signs this guarantee at Denver, Colorado on April 2, 2025.
Guarantor:
RE/MAX, LLC
Name: Karri Callahan
Title: Chief Financial Officer
Source: Item 1 — Business and Organization (FDD pages 334–464)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, RE/MAX, LLC guarantees the performance of RE/MAX Integrated Regions, LLC's obligations as a Subfranchisor. This guarantee specifically applies to franchise registrations in Indiana, Minnesota, Rhode Island, and Wisconsin. It also covers all obligations under Franchise Agreements entered into after April 2, 2025, based on the 2025 Franchise Disclosure Document.
This guarantee remains in effect until all obligations of the Subfranchisor under the franchise registrations and Franchise Agreements are satisfied. Alternatively, it lasts until the Subfranchisor's liability to its franchisees under the Franchise Agreements is completely discharged, whichever occurs first. RE/MAX, LLC remains liable even if a franchisee's claim against the Subfranchisor is outstanding.
In practical terms, this guarantee provides an added layer of security for Remax franchisees in the specified states. Should the Subfranchisor, RE/MAX Integrated Regions, LLC, fail to meet its obligations, RE/MAX, LLC steps in to ensure those obligations are fulfilled. This reduces the risk for franchisees, as they have the backing of the larger RE/MAX, LLC entity. The waiver of notice of acceptance further streamlines the process, while RE/MAX, LLC retains the right to receive notice of default by the Subfranchisor.
The guarantee is binding on RE/MAX, LLC, and its successors and assigns, ensuring long-term commitment. This arrangement is documented with RE/MAX, LLC's Chief Financial Officer, Karri Callahan, signing the guarantee on April 2, 2025, in Denver, Colorado.