What is the relationship between RE/MAX Integrated Regions, LLC and RE/MAX, LLC?
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 guarantees the performance of RE/MAX Integrated Regions, LLC under its franchise registrations in Indiana, Minnesota, Rhode Island, and Wisconsin. This guarantee extends to all obligations of RE/MAX Integrated Regions, LLC 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 RE/MAX Integrated Regions, LLC are satisfied or until their liability to franchisees is completely discharged. RE/MAX, LLC, as the guarantor, will not be released from liability if a franchisee's claim against RE/MAX Integrated Regions, LLC is outstanding. The document specifies that notice of acceptance is waived, but RE/MAX, LLC does not waive the right to receive notice of default on the part of RE/MAX Integrated Regions, LLC.
In simpler terms, RE/MAX, LLC is acting as a financial backstop for RE/MAX Integrated Regions, LLC. If RE/MAX Integrated Regions, LLC fails to meet its obligations to franchisees in the specified regions, RE/MAX, LLC is legally bound to step in and ensure those obligations are fulfilled. This arrangement provides an added layer of security for franchisees, as they have recourse to the larger, more established RE/MAX, LLC if issues arise with RE/MAX Integrated Regions, LLC. This type of guarantee is not uncommon in franchising, especially when a subsidiary or subfranchisor is involved, as it provides reassurance to franchisees about the stability and backing of the overall franchise system.