Is the RE/MAX, LLC guarantee binding on its successors and assigns?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the guarantee of performance provided by RE/MAX, LLC is indeed binding on its successors and assigns. This guarantee specifically pertains to the performance of RE/MAX Integrated Regions, LLC under its franchise registrations in Indiana, Minnesota, Rhode Island, and Wisconsin, as well as its obligations 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 the Subfranchisor (RE/MAX Integrated Regions, LLC) are satisfied or until the liability of the Subfranchisor to its franchisees under the Franchise Agreements has been completely discharged. Importantly, RE/MAX, LLC is not released from liability if a franchisee's claim against RE/MAX Integrated Regions, LLC remains outstanding.
For a prospective Remax franchisee, this guarantee offers a layer of security. If RE/MAX Integrated Regions, LLC fails to meet its obligations, the franchisee can seek recourse from RE/MAX, LLC, and this obligation extends even if RE/MAX, LLC undergoes changes in its corporate structure or ownership. This provides assurance that the commitments made are not easily dissolved through corporate restructuring or transfer of ownership.