Regarding indemnification within the Remax franchise agreement, is a Remax franchisee allowed to settle or compromise any claims to which Remax Regional or Remax, LLC are a party without prior written consent?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
ts 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
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Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, a franchisee is not allowed to settle or compromise any claims to which Remax Regional or Remax, LLC are a party without obtaining prior written consent from them. The franchise agreement stipulates that franchisees must cooperate with Remax Regional and Remax, LLC in the defense of any claims.
This requirement ensures that Remax maintains control over legal matters that could affect the brand's reputation, financial stability, or legal standing. By requiring written consent, Remax can assess the potential impact of any settlement or compromise and ensure that its interests are adequately protected. This provision is tied to the franchisee's broader indemnification obligations, meaning the franchisee is responsible for covering costs arising from their business operations, including legal claims.
For a prospective Remax franchisee, this means they must be diligent in their business operations to minimize the risk of claims. Should a claim arise, they need to work closely with Remax and its legal counsel and cannot independently settle or compromise without written approval. Failure to comply with this provision could result in a breach of the franchise agreement and potential legal consequences. This is a fairly standard clause in franchise agreements across various industries, as franchisors typically want to maintain control over legal matters that could impact the entire franchise system.