Under the Remax Guaranty and Assumption of Obligations agreement, is the Guarantor's liability contingent upon RE/MAX Integrated Regions, LLC pursuing remedies against the Franchisee?
Remax Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor consents and agrees that: (1) his or her direct and immediate liability under this Guaranty shall be joint and several; (2) he or she shall render any payment or performance required under the Agreement and any successor agreement upon demand if Franchisee fails or refuses punctually to do so; (3) such liability shall not be contingent or conditioned upon pursuit by us of any remedies against Franchisee or any other person; (4) such liability shall not be diminished, relieved, or otherwise affected by a subsequent assignment or transfer of the Agreement by Franchisee or by an extension of time, credit, or other indulgence or forbearance which we may from time-to-time grant to Franchisee or to any other person, including without limitation the acceptance of any partial payment or performance, or the compromise or release of any claims, none of which shall in any way modify or amend this Guaranty, which shall be continuing and irrevocable; (5) he or she has established adequate means of obtaining from Franchisee on a continuing basis information regarding Franchisee's financial condition and agrees to keep adequately informed from such means of any facts, events or circumstances which might in any way affect Guarantor's risks under this Guaranty, and Guarantor further agrees that, absent a request for information, we shall have no obligation to disclose to Guarantor any information (including any indulgences or forbearances granted to Franchisee or any other person) or documents acquired by Franchisee in the course of RE/MAX Integrated Regions, LLC's relationship with Franchisee; and (6) the terms of this Guaranty shall survive the termination or expiration of the Agreement and shall continue in full force and effect agreement or any grant of indulgence or forbearances by RE/MAX Integrated Regions, LLC.
Source: Item 22 — Contracts (FDD pages 108–334)
What This Means (2025 FDD)
According to Remax's 2025 Franchise Disclosure Document, under the Guaranty and Assumption of Obligations agreement, a Guarantor's liability is not contingent or conditional upon RE/MAX Integrated Regions, LLC pursuing remedies against the Franchisee. The guarantor's liability is direct and immediate, meaning they are responsible for payment or performance required under the agreement if the franchisee fails or refuses to fulfill their obligations. This obligation extends to any successor agreements as well.
This means that Remax can seek payment or performance directly from the Guarantor without first having to take action against the franchisee. The Guarantor's liability remains even if the agreement is assigned or transferred by the franchisee, or if Remax grants extensions of time, credit, or other indulgences to the franchisee. The Guarantor is expected to stay informed about the franchisee's financial condition and any circumstances that might affect their risks under the Guaranty.
The terms of the Guaranty survive the termination or expiration of the agreement and remain in full effect. The Guarantor also waives certain rights, such as rights to payments and claims for reimbursement or subrogation against the franchisee, and any right to revoke the Guaranty until it is fully satisfied. This ensures that Remax has a direct and continuing recourse to the Guarantor for the franchisee's obligations, regardless of actions taken against the franchisee or changes in the agreement terms.