Under what conditions 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 other parties. Specifically, Remax Regional can delegate any or all of its rights and obligations to Remax, LLC, any related party, or even an unrelated third party.
This delegation clause means that a new Remax franchisee may find themselves dealing with a different entity than Remax Regional for certain aspects of the franchise agreement. This could include receiving benefits or fulfilling obligations through Remax, LLC or another designated party.
For a prospective franchisee, this clause highlights the importance of understanding the relationship between Remax Regional, Remax, LLC, and any other potential parties involved in the franchise operation. While Remax Regional initially grants the franchise, the actual day-to-day interactions and responsibilities could be managed by a different entity due to this delegation provision.