To whom can Remax Regional delegate its rights and obligations under the franchise agreement?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any understanding to the contrary, it is acknowledged and agreed that (i) REMAX Regional may delegate to REMAX, LLC (or any other Related Party or third party), any or all of its rights and obligations arising under this Agreement, and (ii) any party to which such rights and obligations of REMAX Regional have been delegated will be entitled to directly and/or indirectly receive such benefits which would otherwise inure to the benefit of REMAX Regional under the terms of this Agreement.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, Remax Regional has the right to delegate its rights and obligations under the franchise agreement to specific entities. Specifically, Remax Regional can delegate these rights and obligations to Remax, LLC, any Related Party, or a third party.
This delegation clause means that a franchisee may have to deal directly with Remax, LLC, a Related Party, or a third party on certain matters, instead of Remax Regional. This could impact the franchisee's day-to-day operations and relationship with the franchisor, depending on which specific duties are delegated and to whom.
The FDD defines Related Parties as any entity that is directly or indirectly controlled by or under common control with Remax Regional or Remax, LLC. This broad definition means that the franchisee needs to be aware that the entity they are dealing with could change over the term of the agreement, and that Remax Regional has considerable latitude in choosing who will fulfill its obligations.
It is important for a prospective franchisee to understand the implications of this delegation clause and how it might affect their franchise operations. A potential franchisee should seek clarification from Remax regarding which specific rights and obligations are most likely to be delegated and the circumstances under which such delegations typically occur.