Is RE/MAX, LLC considered a third-party beneficiary to the agreement described in this section?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
nd to the RE/MAX Marks and a default of Section 4 of this Agreement. A default under the provisions of this Section 4 by you or anyone employed by or affiliated with your Office shall be deemed a material default of an essential condition of this Agreement that, in addition to other recourses available to REMAX Regional or REMAX, LLC, will give rise to the termination provisions of Section 13.
(10) REMAX, LLC is "Third Party Beneficiary" under RE/MAX Marks Provisions.
You acknowledge and agree that REMAX, LLC is a third-party beneficiary of Section 4 of this Agreement and of every other Section or Subsection of this Agreement that deals with use of the RE/MAX Marks and/or the RE/MAX System.
C. NOTIFICATION OF INFRINGEMENTS AND CLAIMS.
You agree to immediately notify REMAX, LLC in writing of any third-party infringement of or challenge to any of REMAX, LLC's copyrights or any of the RE/MAX Marks, or of any claim by any person of any rights in such copyrights, RE/MAX Marks or similar trade names, trademarks or service marks of which you become aware. You agree not to communicate with anyone except us, REMAX, LLC and our respective counsel in connection with any such infringement, challenge or claim and agree that REMAX, LLC will have the sole right to determine whether an infringement, challenge or claim exists, and if so, to exclusively control any litigation, any U.S. Patent and Trademark Office proceeding or any other proceeding arising out of any such infringement, challenge or claim. You agree to cooperate with and assist REMAX, LLC with the initial and any follow up investigation of the alleged infringement of or challenge to REMAX, LLC's copyrights or Marks.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, RE/MAX, LLC is indeed considered a third-party beneficiary in specific agreements. Item 22 clarifies that RE/MAX, LLC benefits from certain sections of the franchise agreement, particularly those concerning the use of RE/MAX Marks and the RE/MAX System.
This designation as a third-party beneficiary grants RE/MAX, LLC the right to enforce aspects of the agreement as if they were a direct party to it. This is particularly relevant to protecting the brand's trademarks and operational system. As a franchisee, you are obligated to immediately notify RE/MAX, LLC of any infringements or challenges to their copyrights or RE/MAX Marks.
Moreover, the franchisee must cooperate with RE/MAX, LLC in any investigations or legal proceedings related to these infringements, and RE/MAX, LLC has the sole right to control any litigation arising from such issues. However, RE/MAX, LLC has no obligation to defend the RE/MAX Marks from valid claims of prior use or lawful concurrent use by others. This arrangement underscores the importance of brand protection within the Remax franchise system and ensures that RE/MAX, LLC can actively safeguard its intellectual property and brand standards.